Authors
Lorenzo Zirulia
Publication date
2016/8
Journal
Tourism Economics
Volume
22
Issue
4
Pages
837-846
Publisher
SAGE Publications
Description
The aim of this article 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.
Total citations
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