MMC- Analysis for High-Quality Hotels
Jung Hwan Koh
10/3/2019
Reduced Form Analysis for High Quality Hotels
Summary
- Two cluster definition are tested: 1) # of Clusters = 9, and 2) # of Clusters = 2
- No. of Clusters = 9: This is defined by DBSCAN with all hotels (21 clusters obtained). Among 21 clusters, high-quality hotels (rating >= 3.5) are in 9 clusters.
- No. of Clusters = 2: Given all high-quality hotels, I conducted cluster analysis by using DBSCAN and obtain 2 clusters (Variables used:Latitutde, Longitude, and Rating)
Reduced Form Models with 9 Clusters
##
## Effect of AVMMC on Prices with 9 Clusters
## =======================================================
## Dependent variable:
## -----------------------------------
## adr
## IV IV
## (1) (2)
## -------------------------------------------------------
## avmmc -45.973 22.323
## (31.833) (28.071)
##
## hi.sales -60.155***
## (15.178)
##
## s_rating 51.561*** 48.125***
## (9.637) (9.851)
##
## cbd 8.655 15.675***
## (6.040) (5.860)
##
## air -26.994 -47.710***
## (16.404) (15.773)
##
## Constant -19.850 -34.822
## (34.642) (35.220)
##
## -------------------------------------------------------
## Observations 211 211
## R2 0.691 0.680
## Adjusted R2 0.663 0.654
## Residual Std. Error 29.737 (df = 193) 30.159 (df = 194)
## =======================================================
## Note: *p<0.1; **p<0.05; ***p<0.01##
## Effect of AVMMC on Prices with 9 Clusters: Product Characteristics Added
## =======================================================
## Dependent variable:
## -----------------------------------
## adr
## IV IV
## (1) (2)
## -------------------------------------------------------
## avmmc -37.213 36.528
## (33.879) (29.399)
##
## hi.sales -57.219***
## (15.592)
##
## s_rating 49.000*** 41.540***
## (10.469) (10.699)
##
## n_room_type 3.337 8.558
## (5.369) (5.321)
##
## n_room_amenity 0.834 1.824
## (2.334) (2.381)
##
## n_b_service -3.943 -8.597*
## (4.733) (4.695)
##
## cbd 8.538 15.268**
## (6.211) (6.078)
##
## air -24.115 -39.222**
## (16.627) (16.503)
##
## Constant -9.430 -8.258
## (37.105) (38.400)
##
## -------------------------------------------------------
## Observations 211 211
## R2 0.698 0.681
## Adjusted R2 0.666 0.649
## Residual Std. Error 29.625 (df = 190) 30.348 (df = 191)
## =======================================================
## Note: *p<0.1; **p<0.05; ***p<0.01Results of Reduced Form Models with 2 clusters
Cluster Analysis with High Quality Hotels
Distance Limit and No. of Nearest Neighbors
- No. of Nearest Neighbors: 5 Neighbors
- Distance Limit: 0.15 (Euclidean distance: lat, lng, and rating)
##
## Effect of AVMMC on Prices with 2 Clusters
## =======================================================
## Dependent variable:
## -----------------------------------
## adr
## IV IV
## (1) (2)
## -------------------------------------------------------
## avmmc -6.773** -7.463**
## (2.966) (3.274)
##
## hi.sales 4,497.895***
## (720.142)
##
## s_rating 28.607*** 34.975***
## (8.780) (9.632)
##
## cbd 15.022*** 17.381***
## (5.434) (5.987)
##
## air -44.158*** -54.071***
## (13.118) (14.383)
##
## Constant -171.460*** 27.474
## (45.783) (36.326)
##
## -------------------------------------------------------
## Observations 190 190
## R2 0.697 0.628
## Adjusted R2 0.669 0.596
## Residual Std. Error 24.736 (df = 173) 27.321 (df = 174)
## =======================================================
## Note: *p<0.1; **p<0.05; ***p<0.01##
## Effect of AVMMC on Prices with 2 Clusters:More Product Characteristics
## =======================================================
## Dependent variable:
## -----------------------------------
## adr
## IV IV
## (1) (2)
## -------------------------------------------------------
## avmmc -7.494** -8.212**
## (2.934) (3.221)
##
## hi.sales 4,407.757***
## (735.544)
##
## s_rating 28.044*** 31.370***
## (9.074) (9.948)
##
## n_room_type 1.818 7.532
## (4.401) (4.719)
##
## n_room_amenity 2.426 1.433
## (1.943) (2.126)
##
## n_b_service -6.520* -9.673**
## (3.753) (4.082)
##
## cbd 13.496** 16.352***
## (5.516) (6.036)
##
## air -38.495*** -44.333***
## (13.524) (14.818)
##
## Constant -156.413*** 53.053
## (49.219) (38.065)
##
## -------------------------------------------------------
## Observations 190 190
## R2 0.705 0.642
## Adjusted R2 0.672 0.604
## Residual Std. Error 24.632 (df = 170) 27.058 (df = 171)
## =======================================================
## Note: *p<0.1; **p<0.05; ***p<0.01