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Return to tourist destination. Is it reputation, after all?

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In this paper the hypothesis that repeated purchases in the tourism markets could be considered as a consequence of asymmetrical information problems is studied. This hypothesis is analysed with the case study of the island of Tenerife using the estimation of a count data model. It was found that the length of the stay and the information obtained from previous visits and/or relatives and friends might increase the return to a destination suggesting the presence of a reputation mechanism as proposed by Shapiro (1983). The determinants of the willingness to return were also estimated, confirming the main results.

Document Type: Research Article


Affiliations: 1: Departamento de Análisis Económico, Facultad de CC Económicas y Empresariales, Universidad de La Laguna, 38071 La Laguna Tenerife, Spain 2: Dpto. de Métodos Cuantitativos, Facultad de Ciencias Económicas, Universidad de Las Palmas de Gran Canaria, Campus de Tafira, Tafira Baja, 35017 Las Palmas de Gran Canaria, Spain

Publication date: October 10, 2005

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