Skip to main content

International price differences in ski lift tickets

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.

References

  • Amt der Tiroler Landesregierung (2010), Seilbahnen, Lifte in Tirol, Stand 1.4.2010. Innsbruck.

  • Bahk, Byong-Hong, and Michael Gort (1993), “Decomposing Learning by Doing in New Plants”, Journal of Political Economy, 101, pp. 561–583.

    Article  Google Scholar 

  • 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.

  • BMVIT (Federal Ministry for Transport, Innovation and Technology), Eisenbahn- und Seilbahnstatistik der Republik Österreich 2001/2002, Wien.

  • Borsky, Stefan, and Paul A. Raschky, (2009), “The Hedonics of Hedonism – Estimating the Value of Risk-Taking Activities”, Kyklos, 62, pp. 210–225.

    Article  Google Scholar 

  • Broda, Christian M., and David E. Weinstein (2008), Understanding International Price Differences Using Barcode Data, NBER Working Papers 14017, National Bureau of Economic Research.

  • Brynjolfsson Erik, and Lorin M. Hitt (2003), “Computing Productivity: Firm-Level Evidence”, The Review of Economics and Statistics 85, 4, pp. 793–808.

    Article  Google Scholar 

  • Cabolis Christos, Sofronis Clerides, Ioannis Ioannou, and Daniel Senft (2007), “A Textbook Example of International Price Discrimination”, Economics Letters 95 (1), pp. 91–95.

    Article  Google Scholar 

  • Commission of the European Communities (2002), “Price Differences for Supermarket Goods in Europe”, Internal working document DG internal market. Brussels.

  • Crouch, Geoffrey I. (1994), “The Study of International Tourism Demand: A Review of Findings”, Journal of Travel Research, 33 (1), 1994, pp. 12–23

    Article  Google Scholar 

  • Crucini, Mario J., Chris I. Telmer, and Marios Zachariadis (2005), “Understanding European Real Exchange Rates”, American Economic Review, 95, pp. 724–738.

    Article  Google Scholar 

  • Engel, Charles, and John H. Rogers (1996), “How Wide is the Border?”, American Economic Review 86, pp. 1112–1125.

    Google Scholar 

  • Engel, Charles, and John H. Rogers (2004), “European Product Market Integration after the Euro”, Economic Policy, 19 (39), pp. 347–384.

    Article  Google Scholar 

  • 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.).

  • Falk, Martin (2008), “A Hedonic Price Model for Ski Lift Tickets”, Tourism Management, 29 (6), pp. 1172–1184.

    Article  Google Scholar 

  • Falk, Martin (2009), “Are Multi-Resort Ski Conglomerates more Efficient?”, Managerial and Decision Economics 30, pp. 529–538.

    Article  Google Scholar 

  • Forsyth, Peter, and Larry M. Dwyer (2009), “Tourism Price Competitiveness”, The Travel and Tourism Competitiveness Report 2009.

  • Gould, William W. (1997), “Interquantile and Simultaneous Quantile Regression”, Stata Technical Bulletin 38, pp. 14–22.

    Google Scholar 

  • Imbs, Jean, Haroon Mumtaz, Morten O. Ravn, and Hélène Rey (2010), “One TV, One Price?”, Scandinavian Journal of Economics, 112, pp. 753–781.

    Article  Google Scholar 

  • Koenker, Roger, and Kevin F. Hallock (2001), “Quantile Regression”, Journal of Economic Perspectives, 15, pp. 143–156.

    Article  Google Scholar 

  • 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 

  • Lancaster, Kelvin J. (1971), Consumer Demand: A New Approach. New York: Columbia University Press

    Google Scholar 

  • Li, Nicholas, Gita Gopinath, Pierre-Olivier Gourinchas, and Chang-Tai Hsieh (2010), “International Prices, Costs and Markup Differences”, American Economic Review (forthcoming).

  • 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 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Muller, Hansruedi, and Jürg Michel (2001), “Quality Requirements for Aerial Cableway and Their Services – The Case of Switzerland”, Tourism Review, 56, pp. 12–16.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Riddington, Geoff, Colin Sinclair, and Nicola Milne (2000), “Modelling Choice and Switching Behavior between Scottish Ski Centres”, Applied Economics, 32 (8), pp. 1011–1018.

    Article  Google Scholar 

  • Rosen, Sherwin (1974), “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition”, Journal of Political Economy 82, 34–55.

    Article  Google Scholar 

  • Vanat, Laurent (2011), 2011 International Report on Mountain Tourism: Overview of the Key Industry Figures for Ski Resorts, Genève.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Martin Falk.

Additional information

I would like to thank two anonymous referees for valuable comments on an earlier draft. I would also like to thank Massimo Filippini, Rico Maggi, Wilfried Puhwein, and Laurent Vanat for their helpful comments and suggestions. I would also like to thank the participants of the EARIE 2007 conference in Valencia, the German Economic Association 2007 in Munich, and the 2008 Meeting of the Swiss Society of Economics and Statistics in Lausanne for their helpful comments.

Rights and permissions

Open Access This article is distributed under the terms of the Creative Commons Attribution 2.0 International License ( https://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Reprints and Permissions

About this article

Cite this article

Falk, M. International price differences in ski lift tickets. Swiss J Economics Statistics 147, 303–336 (2011). https://doi.org/10.1007/BF03399348

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03399348

JEL-Classification

  • D40
  • F3
  • L83
  • L11

Keywords

  • international price differences
  • ski areas
  • quality characteristics
  • quantile regressions