A common explanation for the prevalence of "just-below" pricing is that consumers irrationally perceive a price such as $9.99 as significantly lower than $10. This paper offers an alternative explanation that preserves rationality: rational consumers may not include price endings in their...

The purpose of this paper is to distinguish the separate effects of actual and potential competition on fares using a more realistic and detailed representation of the latter than in previous studies. An investigation of routes involving the St. Louis hub demonstrates that routes with a hub at...

Deindustrialization, a decline in union membership, maturation of baby-boomers, shorter working hours and increasing numbers of families headed by women and blacks have all been cited as causes of the "shrinking of the middle class." Simultaneously testing these hypotheses, we find that the...