More Means Worse. Asymmetric Information, Spatial Displacement and Sustainable Heritage Tourism

Tinbergen Institute Discussion Paper No. TI 2001-035/2

17 Pages Posted: 19 Jul 2001

See all articles by Silvia Caserta

Silvia Caserta

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Antonio P. Russo

Tinbergen Institute

Date Written: May 8, 2001

Abstract

This paper analyses the market transformations in heritage tourism destinations when excessive tourism demand determines the emergence of a class of excursionists among visitors. Building on the approach of Keane (1997) and Shapiro (1983), some important dimensions of sustainable tourism development are highlighted. The lesser capacity of excursionists to learn the true quality of the tourist goods provides an opportunity for producers to cut back on quality. To serve high quality goods and keep up the reputation of the destination, producers need to gain a mark-up on price that might not be sustained in a competitive market. Hence the decline in "high-paying" demand segments, increasingly substituted by visitors with lesser quality expectations. The proposed set-up allows the identification of appropriate policy instruments to reverse this process.

Keywords: Sustainable tourism, heritage, excursionism, moral hazard, reputation

JEL Classification: L83, R11, R32

Suggested Citation

Caserta, Silvia and Russo, Antonio Paolo, More Means Worse. Asymmetric Information, Spatial Displacement and Sustainable Heritage Tourism (May 8, 2001). Tinbergen Institute Discussion Paper No. TI 2001-035/2, Available at SSRN: https://ssrn.com/abstract=274728 or http://dx.doi.org/10.2139/ssrn.274728

Silvia Caserta

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Antonio Paolo Russo (Contact Author)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands
+31 10 4081578 (Phone)
+31 10 4089153 (Fax)

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