Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159872
Authors: 
Zirulia, Lorenzo
Year of Publication: 
2015
Series/Report no.: 
Quaderni - Working Paper DSE 1034
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.
JEL: 
D83
L12
L83
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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