“Should I stay or should I go?”: Weather forecasts and the economics of “short breaks”

Zirulia, Lorenzo (2015) “Should I stay or should I go?”: Weather forecasts and the economics of “short breaks”. Bologna: Dipartimento di Scienze economiche DSE, p. 20. DOI 10.6092/unibo/amsacta/4395. In: Quaderni - Working Paper DSE (1034). ISSN 2282-6483.
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Abstract

The aim of this paper is to model the decisions of tourists and a monopolist firm when weather forecasts are available. Before deciding whether to go on holiday or not, but after the firm has decided and posted its price, tourists can look at weather forecasts. Our results show that the price chosen by the firm and the corresponding equilibrium profit are decreasing as a function of the accuracy of weather forecasts. Consumers, instead, are better off the more accurate weather forecasts become. Managerial and policy implications are also derived.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Zirulia, Lorenzo
Keywords
weather forecast, firm pricing, tourist behaviour
Subjects
ISSN
2282-6483
DOI
Deposit date
13 Oct 2015 09:47
Last modified
23 Oct 2015 09:29
URI

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