In this article, we use both graphical and analytical methods to investigatethe market structure of one of the world’s fastest growing industries. For the German and Italian datasets, we show that the size distribution of tourism industry is heavy-tailed and consistent with a power-law behavior in its upper tail. Such a behavior seemsquite persistent over the time horizon covered by our study, provided that during the period 2004–2009, the shape parameter is always in the vicinity of 2.5 for Germany and 2.6 for Italy. Size of the tourism industry has been proxied by the lodging capacity ofhotel establishments: hotels, boarding houses, inns, lodging houses, motels, apartment hotels, tourist villages, and tourist apartments. Data belonging to the EUROSTAT and ISTAT databases have been used for Germany and Italy, respectively. Our aim is not to provide the best fit to the data but simply to focus our attention on the right tail ofthe size distribution of tourism industry. Understanding the behavior of the upper tail is indeed fundamental to capture the structure of the market. This study adds a new evidence to the list of empirical phenomena for which power laws hold.
|Numero di pagine||12|
|Stato di pubblicazione||Published - 2013|
All Science Journal Classification (ASJC) codes
- Statistics and Probability
- Mathematics (miscellaneous)
- Social Sciences (miscellaneous)
- Economics and Econometrics