Selling Package Tours to Tourists: A Contract Theory Perspective
Annals of Tourism Research, Vol. 42, pp. 439-442, 2013
Posted: 6 Jun 2013
There are 2 versions of this paper
Selling Package Tours to Tourists: A Contract Theory Perspective
Date Written: June 5, 2013
Abstract
We provide the first contract-theoretic analysis of how best to sell package tours to heterogeneous tourists in an environment with asymmetrically held information. Our analysis has three practical implications. First, asymmetric information tends to hamper package tour sales. Second, some tourists (high-type) will benefit from asymmetric information but others (low-type) will not. Third, low-type tourists tend to buy package tours with inefficiently low quality and they may also be unable to buy a package tour.
Keywords: Contract Theory, Package Tour, Tourist, Uncertainty
JEL Classification: L83, D81
Suggested Citation: Suggested Citation