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We posit and empirically test the hypothesis that airlines are able to charge a fare premium in markets that originate in their domestic country relative to similar markets that originate in foreign countries. To this end, we focus on intercontinental one-stop air travel trips for which the...
Persistent link: https://www.econbiz.de/10011583706
We analyze the phenomenon of hub dominance by developing a model relating faresto distance, using the mainleg of intercontinental flights for scaling purposes. Our results indicate thatat least some of the major Europeancarriers place a mark up on flights originating from or going to their hubs.
Persistent link: https://www.econbiz.de/10011303861
Frequent Flier Programs (FFPs) are said to impact airline consumer behaviour such that revenue of sponsoring airlines increases. Prior research relies on aggregate industry data to study FFPs. We examine the impact of FFPs on individual consumer behaviour in a quasi-natural experimental set-up...
Persistent link: https://www.econbiz.de/10010510073
We examine the impact of airline codesharing on consumer choice behavior in non-stop international route markets. Using stated preference data, we document that consumer valuation of flights by alien foreign carriers is significantly higher if these flights are offered as codeshare products by...
Persistent link: https://www.econbiz.de/10011916498
Persistent link: https://www.econbiz.de/10009720698
This paper studies whether a regulator needs to correct the route structure choice by carriers with market power in the presence of congestion externalities, in addition to correct their pricing. We account for passenger benefits from increased frequency, passenger connecting costs, airline...
Persistent link: https://www.econbiz.de/10010225784
We investigate the impacts of five airline mergers on one quality dimension, namely route frequency. We use monthly data on routes between the largest 64 US cities from 1999 to 2016. On average, the mergers decrease the frequency, but there are large differences between the five mergers. We...
Persistent link: https://www.econbiz.de/10011715887
We examine the relationship between the total size of an airline and its service quality by analysing over 4.8 million domestic flights within the USA in 2016. The total size of an airline is measured by its total market share, total amount of assets or total number of full-time equivalent...
Persistent link: https://www.econbiz.de/10011739415
search for a job-type that matches their skill. They face a trade-off between match quality and the cost of extended search …. This trade-off differs between regions, because search is more efficient in larger regions. Then, interregional mobility … and trade lead to a pattern of specialization where large scale regions have a comparative advantage in producing …
Persistent link: https://www.econbiz.de/10011326951
betweenfirms,thereby lowering prices and increasing economic welfare. This paperpresents a search model that provides a different …, but reduce prices when consumers search intensityis high. These different comparative statics results may explain themixed …
Persistent link: https://www.econbiz.de/10011303295