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AI in hospitality can hit profits at first before boosting them later: firms face short-run adjustment costs but gain from differentiation and productivity over time, producing a U-shaped adoption–profit curve. Widespread robot acceptance needs favorable initial conditions and incentives, and household tourism demand is nonlinearly affected by women’s economic empowerment, with gender-equal households allocating spending most efficiently.

MODELING HOSPITALITY AND TOURISM STRATEGIES
Di Zhu · Fetched March 10, 2026 · Washington State University
openalex theoretical low evidence 7/10 relevance DOI Source PDF
The dissertation shows that AI adoption in hospitality has a U-shaped effect on firm profits (initial adjustment costs followed by long-run gains), that acceptance of service robots depends on strategic stakeholder dynamics and initial conditions, and that women’s economic empowerment nonlinearly shapes household tourism spending with gender-equal households achieving the most efficient outcomes.

This dissertation investigates various strategies to advance the development of the hospitality and tourism industry through three essays, with a particular emphasis on the transformative roles of artificial intelligence (AI) and women’s economic empowerment. The first essay investigates the nonlinear impact of AI adoption on hospitality firm profit based on both demand and productivity perspectives. This study develops a differentiated Bertrand competition model where firms compete on price and AI enhances service differentiation and pricing strategies. Theoretical modeling and empirical evidence synergistically reveal a U-shaped influence of AI adoption on firm profit, indicating dynamic and long-term profit gains from AI in hospitality. The second essay examines the strategic interactions among hotel owners, employees, and customers in the context of AI service robot implementation. Utilizing a three-player evolutionary game theory model and MATLAB-based simulations, this study analyzes how stakeholder behaviors evolve toward the ideal equilibrium which defined as all parties adopting a positive attitude towards service robots. The evolutionary analysis considers varying initial conditions and parameters, including sensitivity to service robot, training costs, perceived risks, marketing influence, and labor efficiency. The third essay presents a theoretical framework for understanding the nonlinear effects of women’s economic empowerment on household tourism expenditure grounded in feminist theory and rational choice theory. This study develops a household decision-making model to explore the intricate power dynamics shaping tourism-related financial decisions, suggesting that gender equality within the household leads to optimal tourism spending. Generally, this dissertation offers valuable theoretical and practical insights into effective and sustainable strategies that can drive long-term growth and innovation within the hospitality and tourism industry.

Summary

Main Finding

The dissertation comprises three essays showing that AI and women’s economic empowerment affect hospitality and tourism through nonlinear, context-dependent channels. Key overall findings: - AI adoption has a U-shaped effect on hospitality firm profit: short-term costs and adjustment can reduce profits, while longer-term gains from differentiation and productivity raise profits. - Stakeholder attitudes toward AI service robots evolve strategically; widespread positive adoption requires favorable initial conditions and incentives (lower training costs, higher labor efficiency, effective marketing). - Women’s economic empowerment influences household tourism expenditure nonlinearly; intra-household gender equality produces the most efficient/optimal tourism spending outcomes.

Key Points

  • Essay 1 (AI and firm profit)

    • Uses a differentiated Bertrand competition framework where AI increases service differentiation and alters pricing strategies.
    • Integrates demand-side and productivity mechanisms to show a U-shaped relationship between AI adoption intensity and firm profits.
    • Implies dynamic, long-run profit gains from AI after overcoming early adoption costs and strategic adjustments.
  • Essay 2 (Service robots and stakeholder dynamics)

    • Models hotel owners, employees, and customers as a three-player evolutionary game.
    • Simulations (MATLAB) trace how behavior evolves toward an “ideal equilibrium” where all parties accept service robots.
    • Adoption likelihood depends on initial conditions and parameters: sensitivity to robots, training costs, perceived risks, marketing influence, and labor efficiency.
    • Identifies levers (e.g., reducing training costs, improving perceived safety, targeted marketing) that shift the system toward positive equilibrium.
  • Essay 3 (Women’s empowerment and household tourism spending)

    • Builds a household decision-making model anchored in feminist theory and rational choice to capture intra-household bargaining and preferences.
    • Shows a nonlinear relationship between women’s economic empowerment and tourism expenditure, with gender equality within the household yielding optimal spending allocations.
    • Emphasizes how power dynamics and preference aggregation shape demand for tourism services.

Data & Methods

  • Essay 1

    • Theoretical model: differentiated Bertrand competition capturing pricing and service differentiation effects of AI.
    • Empirical component: firm-level analysis linking AI adoption measures to profit, demand and productivity indicators (modeling and robustness checks align with theoretical predictions).
    • Identification strategy: combines structural predictions from theory with observed firm behavior to detect nonlinear (U-shaped) effects.
  • Essay 2

    • Analytical framework: three-player evolutionary game theory to represent strategic interactions among owners, employees, customers.
    • Computational methods: MATLAB simulations exploring dynamic trajectories under varying parameter values and initial states.
    • Sensitivity analysis: systematic variation of training costs, perceived risks, marketing strength, and labor efficiency to map basins of attraction for equilibria.
  • Essay 3

    • Theoretical model: household decision-making and bargaining model drawing on feminist and rational choice theories.
    • Analytical exploration: comparative statics and theoretical characterization of nonlinear impacts of women’s empowerment on tourism spending.
    • No primary empirical estimation reported; framework intended to guide future empirical work.

Implications for AI Economics

  • Investment timing and policy design

    • The U-shaped profit profile implies early adopters may face transitional losses; subsidies, tax incentives, or targeted support (training, integration assistance) can accelerate welfare-improving adoption.
    • Policies should account for dynamic complementarities (e.g., service redesign, staff retraining) that realize long-run productivity and demand gains.
  • Stakeholder-centered adoption strategies

    • Evolutionary game results highlight that adoption is not purely technological or cost-driven—customer perceptions, worker acceptance, and managerial actions matter.
    • Managers should reduce perceived risks (safety, service quality), lower training costs, and use marketing to shape customer and employee expectations.
    • Labor-market and retraining policies can align worker incentives and ease transitions to robot-augmented service models.
  • Demand-side and equity considerations

    • Household bargaining and women’s empowerment shape tourism demand; AI-driven changes in jobs and incomes will interact with intra-household allocation decisions.
    • Designing AI deployment and tourism products with gender-aware demand effects can improve inclusivity and market uptake.
  • Research directions

    • Empirical validation: more granular firm- and household-level panel data to estimate the nonlinear effects and causal channels suggested by the models.
    • Behavioral extensions: incorporate heterogeneous customer preferences and worker risk attitudes in dynamic adoption models.
    • Policy evaluation: experimentally test interventions (training subsidies, marketing campaigns, safety certifications) that the evolutionary model predicts will move systems toward positive equilibria.

If you want, I can (a) draft potential empirical strategies and data sources to test each essay’s theoretical predictions, or (b) produce a one-page slide-ready summary highlighting managerial and policy recommendations. Which would be most useful?

Assessment

Paper Typetheoretical Evidence Strengthlow — The dissertation is dominated by formal models and simulations; empirical support appears limited to correlational firm-level analysis without clear exogenous identification, so causal claims rely mostly on structural assumptions and model fit rather than plausibly exogenous variation or experimental evidence. Methods Rigormedium — Theoretical work appears carefully constructed (differentiated Bertrand framework, evolutionary game, household bargaining) and simulations/sensitivity analyses are systematic, but the empirical component is not described as using strong causal techniques (no instruments, diff-in-diff, or experimental design reported) and real-world validation is limited. SampleNot fully specified in the summary: empirical component in Essay 1 uses firm-level data linking measures of AI adoption intensity to firm profit, demand and productivity indicators (sample frame, geography, time period, and sample size not reported); Essay 2 relies on MATLAB simulations of a three-player evolutionary game; Essay 3 is purely theoretical with no primary household-level empirical estimation. Themesproductivity adoption human_ai_collab IdentificationPrimarily structural and theoretical identification: essay 1 derives testable implications from a differentiated Bertrand competition model and compares observed firm-level relationships between AI adoption intensity and profit/productivity to model predictions (correlational regressions and robustness checks rather than exogenous variation); essay 2 uses an evolutionary game-theoretic model with simulation-based exploration of dynamic equilibria; essay 3 is a household bargaining theoretical model analyzed via comparative statics — no randomized or quasi-experimental sources of exogenous variation are reported. GeneralizabilityRelies on specific model structures (differentiated Bertrand competition, particular evolutionary game payoff specifications) that may not capture all real-world market heterogeneity, Empirical component unspecified in geography, sectoral coverage, firm size distribution and time period, limiting external validity, Simulation results depend on chosen parameter values/initial conditions and may not map directly onto real hospitality contexts, Household bargaining model in Essay 3 is theoretical only and lacks empirical validation across cultural or institutional contexts, Findings are hospitality/tourism-specific and may not generalize to other service sectors or manufacturing

Claims (11)

ClaimDirectionConfidenceOutcomeDetails
AI adoption has a U-shaped effect on hospitality firm profit: short-term costs and adjustment can reduce profits, while longer-term gains from differentiation and productivity raise profits. Firm Revenue mixed medium firm profit
U-shaped effect on hospitality firm profit: short-term decline, long-run increase
0.04
Short-term AI adoption costs and adjustment reduce firm profits during early adoption phases. Firm Revenue negative medium short-run firm profit (profit reduction)
short-run profit reductions due to adoption costs and adjustment
0.04
In the longer run, AI-driven increases in service differentiation and productivity raise firm profits after firms overcome initial adoption costs. Firm Revenue positive medium long-run firm profit (profit increase)
long-run profit increases from differentiation and productivity after adoption costs are overcome
0.04
Stakeholder attitudes toward AI service robots evolve strategically; widespread positive adoption requires favorable initial conditions and appropriate incentives (e.g., lower training costs, higher labor efficiency, effective marketing). Adoption Rate mixed medium stakeholder acceptance/adoption likelihood of service robots (equilibrium outcomes)
stakeholder acceptance evolves; adoption sensitive to initial conditions and incentives
0.04
Simulations show behavior can converge to an 'ideal equilibrium' in which owners, employees, and customers all accept service robots. Adoption Rate positive medium equilibrium acceptance of service robots by all three stakeholder groups
simulations show possible convergence to full acceptance equilibrium
0.04
Adoption likelihood is sensitive to initial conditions and to parameters such as employee sensitivity to robots, training costs, perceived risks, marketing influence, and labor efficiency. Adoption Rate mixed medium probability/likelihood of converging to positive adoption equilibria
adoption likelihood sensitive to parameters (training cost, perceived risk, marketing, labor efficiency)
0.04
Levers such as reducing training costs, improving perceived safety, and targeted marketing can shift the system toward a positive adoption equilibrium. Adoption Rate positive medium shift in equilibrium adoption outcome (increased acceptance/adoption probability)
reducing training costs/improving safety/targeted marketing can increase adoption probability
0.04
Women's economic empowerment affects household tourism expenditure nonlinearly, with intra-household gender equality producing the most efficient/optimal tourism spending outcomes. Consumer Welfare mixed low household tourism expenditure (spending level and allocative efficiency)
nonlinear effect: intra-household gender equality optimizes tourism spending
0.02
The dissertation implies policy interventions (subsidies, tax incentives, training and integration assistance) can accelerate welfare-improving AI adoption by helping firms overcome the early negative part of the U-shaped profit profile. Governance And Regulation positive low AI adoption rate and welfare-improving adoption timing
policy interventions (subsidies, tax incentives, training) can accelerate welfare-improving adoption by offsetting initial costs
0.02
Adoption outcomes are shaped not only by technology and costs but also by customer perceptions, worker acceptance, and managerial actions; thus stakeholder-centered strategies are needed for successful deployment. Adoption Rate mixed medium AI/service-robot adoption outcomes and stakeholder attitudes
adoption shaped by customer perceptions, worker acceptance, managerial actions
0.04
More granular firm- and household-level panel data are needed to empirically validate the dissertation's theoretical predictions about nonlinear effects and causal channels. Research Productivity null_result high empirical identification of nonlinear effects (research/data adequacy)
calls for more granular firm- and household-level panel data to validate nonlinear predictions
0.06

Notes