This paper investigates the impacts of complementary alliance on airfares. The conventional wisdom argues that complementary airline alliances reduce airfares for passengers on the flow-through routes as a result of the elimination of double marginalization and efficiency gain. On the other...

This study proposes a framework to identify and measure the extent of product differentiation among services provided by transportation firms, and applies it to the US domestic airline markets. By formulating and estimating an Almost Ideal Demand System and a set of price response equations for...