Advertisement

Swiss Journal of Economics and Statistics

, Volume 147, Issue 3, pp 303–336 | Cite as

International price differences in ski lift tickets

  • Martin Falk
Open Access
Article

Summary

This paper provides empirical evidence on international price differences in ski lift tickets based on 214 ski areas in Austria, France, and Switzerland for the winter season 2010/2011. We find that French and Austrian one-day lift tickets (net of VAT) are an average of 17 and 7 per cent lower, respectively, than Swiss ticket prices after controlling for ski areas’ characteristics. The results of quantile regressions show that the magnitude of the international price differences is quite similar for low- and high-priced ski areas. Furthermore, price differences across countries do not increase with distance to the nearest border ski area.

JEL-Classification

D40 F3 L83 L11 

Keywords

international price differences ski areas quality characteristics quantile regressions 

References

  1. Amt der Tiroler Landesregierung (2010), Seilbahnen, Lifte in Tirol, Stand 1.4.2010. Innsbruck.Google Scholar
  2. Bahk, Byong-Hong, and Michael Gort (1993), “Decomposing Learning by Doing in New Plants”, Journal of Political Economy, 101, pp. 561–583.CrossRefGoogle Scholar
  3. Berwert, Adrian, Franziska Bignasca, and Paolo Filippini (1996), „Preise und Qualitätseigenschaften Schweizerischer Skigebiete: Schätzungen mit dem hedonischen Preisansatz unter Berücksichtigung räumlicher Autokorrelation“, Jahrbuch für Regionalwissenschaften 16–17, pp. 67–97.Google Scholar
  4. BMVIT (Federal Ministry for Transport, Innovation and Technology), Eisenbahn- und Seilbahnstatistik der Republik Österreich 2001/2002, Wien.Google Scholar
  5. Borsky, Stefan, and Paul A. Raschky, (2009), “The Hedonics of Hedonism – Estimating the Value of Risk-Taking Activities”, Kyklos, 62, pp. 210–225.CrossRefGoogle Scholar
  6. Broda, Christian M., and David E. Weinstein (2008), Understanding International Price Differences Using Barcode Data, NBER Working Papers 14017, National Bureau of Economic Research.Google Scholar
  7. Brynjolfsson Erik, and Lorin M. Hitt (2003), “Computing Productivity: Firm-Level Evidence”, The Review of Economics and Statistics 85, 4, pp. 793–808.CrossRefGoogle Scholar
  8. Cabolis Christos, Sofronis Clerides, Ioannis Ioannou, and Daniel Senft (2007), “A Textbook Example of International Price Discrimination”, Economics Letters 95 (1), pp. 91–95.CrossRefGoogle Scholar
  9. Commission of the European Communities (2002), “Price Differences for Supermarket Goods in Europe”, Internal working document DG internal market. Brussels.Google Scholar
  10. Crouch, Geoffrey I. (1994), “The Study of International Tourism Demand: A Review of Findings”, Journal of Travel Research, 33 (1), 1994, pp. 12–23CrossRefGoogle Scholar
  11. Crucini, Mario J., Chris I. Telmer, and Marios Zachariadis (2005), “Understanding European Real Exchange Rates”, American Economic Review, 95, pp. 724–738.CrossRefGoogle Scholar
  12. Engel, Charles, and John H. Rogers (1996), “How Wide is the Border?”, American Economic Review 86, pp. 1112–1125.Google Scholar
  13. Engel, Charles, and John H. Rogers (2004), “European Product Market Integration after the Euro”, Economic Policy, 19 (39), pp. 347–384.CrossRefGoogle Scholar
  14. Engel Charles, John H. Rogers and Shing-Yi Wang, (2003), Revisiting the Border: an assessment of the law of one price using very disaggregated consumer price data, International Finance Discussion Papers 777, Board of Governors of the Federal Reserve System (U.S.).Google Scholar
  15. Falk, Martin (2008), “A Hedonic Price Model for Ski Lift Tickets”, Tourism Management, 29 (6), pp. 1172–1184.CrossRefGoogle Scholar
  16. Falk, Martin (2009), “Are Multi-Resort Ski Conglomerates more Efficient?”, Managerial and Decision Economics 30, pp. 529–538.CrossRefGoogle Scholar
  17. Forsyth, Peter, and Larry M. Dwyer (2009), “Tourism Price Competitiveness”, The Travel and Tourism Competitiveness Report 2009.Google Scholar
  18. Gould, William W. (1997), “Interquantile and Simultaneous Quantile Regression”, Stata Technical Bulletin 38, pp. 14–22.Google Scholar
  19. Imbs, Jean, Haroon Mumtaz, Morten O. Ravn, and Hélène Rey (2010), “One TV, One Price?”, Scandinavian Journal of Economics, 112, pp. 753–781.CrossRefGoogle Scholar
  20. Koenker, Roger, and Kevin F. Hallock (2001), “Quantile Regression”, Journal of Economic Perspectives, 15, pp. 143–156.CrossRefGoogle Scholar
  21. Krugman, Paul (1987), “Pricing to Market when the Exchange Rate Changes”, In S. Arndt, and J. Richardson (eds), Real Financial Linkages among Open Economies, pp. 49–70. MIT Press, Cambridge.Google Scholar
  22. Lancaster, Kelvin J. (1971), Consumer Demand: A New Approach. New York: Columbia University PressGoogle Scholar
  23. Li, Nicholas, Gita Gopinath, Pierre-Olivier Gourinchas, and Chang-Tai Hsieh (2010), “International Prices, Costs and Markup Differences”, American Economic Review (forthcoming).Google Scholar
  24. Lim, Christine (2006), “Tourism Demand Modelling: Issues and Implications”, in L. Dwyer and P. Forsyth (eds), International Handbook of Tourism Economics, Cheltenham: Edward Elgar, London.Google Scholar
  25. Moeltner, Klaus, and Jeffrey Englin (2004), “Choice Behavior Under Time-Variant Quality: State Dependence Versus ‘Play-It-by-Ear’ in Selecting Ski Resorts”, Journal of Business & Economic Statistics, 22 (2), 214–224.CrossRefGoogle Scholar
  26. Mulligan, James G., and Emmanuel Llinares (2003), “Market Segmentation and the Diffusion of Quality Enhancing Innovations: The Case of Downhill Skiing”, The Review of Economics and Statistics, 85, pp.493–501.CrossRefGoogle Scholar
  27. Muller, Hansruedi, and Jürg Michel (2001), “Quality Requirements for Aerial Cableway and Their Services – The Case of Switzerland”, Tourism Review, 56, pp. 12–16.CrossRefGoogle Scholar
  28. Parsley, David, and Shang-Jin Wei (2001), “Explaining the Border Effect: The Role of Exchange Rate Variability, Shipping Costs, and Geography”, Journal of International Economics, 55(1), pp. 87–105.CrossRefGoogle Scholar
  29. Riddington, Geoff, Colin Sinclair, and Nicola Milne (2000), “Modelling Choice and Switching Behavior between Scottish Ski Centres”, Applied Economics, 32 (8), pp. 1011–1018.CrossRefGoogle Scholar
  30. Rosen, Sherwin (1974), “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition”, Journal of Political Economy 82, 34–55.CrossRefGoogle Scholar
  31. Vanat, Laurent (2011), 2011 International Report on Mountain Tourism: Overview of the Key Industry Figures for Ski Resorts, Genève.Google Scholar

Copyright information

© Swiss Society of Economics and Statistics 2011

Authors and Affiliations

  1. 1.Austrian Institute of Economic Research (WIFO)ViennaAustria

Personalised recommendations