Article

Online platform price parity clauses: Evidence from the EU Booking.com case

Andrea Mantovani, Claudio Piga et Carlo Reggiani

Résumé

Online platforms often impose Price Parity Clauses to prevent sellers from charging lower prices on alternative sales channels. We provide quasi-experimental evidence on the full removal of Price Parity Clauses in France in 2015 for hotels listed on Booking.com. Our analysis reveals significant price decreases in the short run, but a more limited effect in the medium run. However, hotels characterized by a more complex organizational structure decreased their prices more substantially. Overall, the intervention appears to have benefited a subset of consumers using Booking.com.

Codes JEL

  • D40: General
  • K21: Antitrust Law
  • L11: Production, Pricing, and Market Structure • Size Distribution of Firms
  • L42: Vertical Restraints • Resale Price Maintenance • Quantity Discounts
  • L81: Retail and Wholesale Trade • e-Commerce

Référence

Andrea Mantovani, Claudio Piga et Carlo Reggiani, « Online platform price parity clauses: Evidence from the EU Booking.com case », European Economic Review, vol. 131, n° 103625, janvier 2021.

Publié dans

European Economic Review, vol. 131, n° 103625, janvier 2021