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This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such … variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on … 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
We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish conditions under which the equilibrium is unique and converges to a system of differential equations. Using unique and comprehensive pricing and bookings data for competing...
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
last decade. More than 30 years after domestic airline markets were deregulated, the dismal financial record is a puzzle …
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 …
Persistent link: https://www.econbiz.de/10012465197
The airline industry's current financial crisis has raised concerns over the ramifications of airline bankruptcies for … air service offered, not the number of flights offered by a particular airline. We study all major U.S. airline … recognizing that competing airlines may increase service in response to a reduction in flights by a bankrupt airline. We do not …
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 … and their rivals. The data suggest that an airline's prices typically decline somewhat before it files for bankruptcy … bankrupt airline lower their prices, however, nor that they lose passengers to their bankrupt rival. These results indicate …
Persistent link: https://www.econbiz.de/10012473846
We estimate a model of service choice and price competition in airline markets, allowing for the carriers that provide …
Persistent link: https://www.econbiz.de/10012453499