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statistical model for the passengers'sequential choice of airport and airline is calibrated. It appears that thechoice sequence … first airport, then airline is statistically preferable to thereversed choice sequence. Frequency, the average number of … seats offered by anairline and access time to the airport are all significant. Separate models areestimated for business and …
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The demand for air transport is largely determined by the spending capacity of customers. Thispaper aims to offer more insight into the determinants of price elasticities in the aviation sector. Itseeks to identify both common and contrasting factors that influence the price elasticities, on...
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This paper sheds light on a recent empirical controversy about the effect of competition on price discrimination in airline markets (Borenstein and Rose (1994), Gerardi and Shapiro, (2009)). We introduce individual demand uncertainty into Hotelling’s model of horizontal product differentiation...
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