Spatial Competition in Cities: Hotel Pricing on UEFA Football Days
Abstract. We document a novel empirical finding: the prices of competing services ‒ in our case, hotels ‒ appear not to be spatially correlated in the urban landscape, not even following exogenous demand shocks such as the announcement of major sport events. We thus argue that in this specific setting, topographic location is not a first order determinant of price competition. To better understand the latter, we estimate a rich model of spatial competion using fine-grained hotel-level data featuring daily price variations.