Bilotkach, Volodymyr; Gaggero, Alberto A.; Piga, Claudio A. - Rimini Centre for Economic Analysis (RCEA) - 2011
Traditional theories of airline pricing maintain that fares monotonically increase as fewer seats remain available on a flight. A fortiori, this implies a monotonically increasing temporal profile of fares. In this paper, we exploit the presence of drops in offered fares over time as an...