Showing 1 - 10 of 50
empirical work. We provide reduced-form evidence that our model can explain why incumbent airlines cut prices when Southwest …
Persistent link: https://www.econbiz.de/10012458374
variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on …This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such … a route averages thirty-six percent of the airline's average ticket price on the route. The pattern of price dispersion …
Persistent link: https://www.econbiz.de/10012475215
comprehensive pricing and bookings data for competing U.S. airlines, we estimate our model and find that dynamic pricing results in … results in single-firm settings due to the strategic role of competitor scarcity. Pricing heuristics commonly used by airlines …
Persistent link: https://www.econbiz.de/10013362001
dynamic airline pricing accounting for both sources of price adjustments using novel flight-level data. I use the model … estimates to evaluate the welfare effects of dynamic airline pricing. Relative to uniform pricing, dynamic pricing benefits …
Persistent link: https://www.econbiz.de/10012599279
We study how organizational boundaries affect pricing decisions using comprehensive data from a large U.S. airline. We …
Persistent link: https://www.econbiz.de/10012696417
Manufacturers of durable goods can encourage consumers facing transaction costs to upgrade by accepting used units as trade-ins. These "buyback schemes" increase demand for new units, but increase the supply of used units if trade-ins are resold. In this paper, I investigate the equilibrium...
Persistent link: https://www.econbiz.de/10013388853
U.S. airlines have lost nearly $60 billion (2009 dollars) in domestic markets since deregulation, most of it in the … last decade. More than 30 years after domestic airline markets were deregulated, the dismal financial record is a puzzle …, analysts, and researchers -- including high taxes and fuel costs, weak demand, and competition from lower-cost airlines …
Persistent link: https://www.econbiz.de/10012461914
Following a brief review of the U.S. domestic airline industry under regulation (1938-1978), we study the changes that … public policy issues facing the industry: (a) the sustainability of competition and volatility of airline profits, (b …) possible market power of dominant airlines, and (c) congestion and investment shortfall in the airport and air traffic …
Persistent link: https://www.econbiz.de/10012465197
recognizing that competing airlines may increase service in response to a reduction in flights by a bankrupt airline. We do not …The airline industry's current financial crisis has raised concerns over the ramifications of airline bankruptcies for … healthy airlines are inclined to reduce flights. Moreover, from a consumer and policy perspective, the real concern is total …
Persistent link: https://www.econbiz.de/10012469062
. The turmoil in the U.S. airline industry has triggered much of the public policy discussion, as some observers have argued … that airlines in financial distress, particularly those operating under Chapter 11 bankruptcy protection, reduce prices to … the point of harming themselves and their competitors. This study investigates the pricing strategies of bankrupt airlines …
Persistent link: https://www.econbiz.de/10012473846