Gerardi, Kristopher S.; Shapiro, Adam Hale - In: Journal of Political Economy 117 (2009) 1, pp. 1-37
We analyze the effects of competition on price dispersion in the airline industry, using panel data from 1993:Q1 through 2006:Q3. Competition has a negative effect on price dispersion, in line with the textbook treatment of price discrimination. This effect is pronounced for routes with...