Are Airlines' Price-Setting Strategies Different?

Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in price-setting strategies among the carriers competing on a particular route are documented.

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Year of publication:	2006
Authors:	Bilotkach, Volodymyr ; Gorodnichenko, Yuriy ; Talavera, Oleksandr ; Zubenko, Igor
Institutions:	DIW Berlin (Deutsches Institut für Wirtschaftsforschung)
Subject:	airline industry \| price dynamics

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Extent:	application/pdf
Series:	Discussion Papers of DIW Berlin. - ISSN 1619-4535.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 645 12 pages long
Classification:	L93 - Air Transportation ; D21 - Firm Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005018672