Dynamic patterns of prices in different markets may motivate (strategic) consumers, who could be monitoring price movements over time, to game vendors. Do past price movements carry information about the probability and magnitude of future price drops? Conducting empirical work in the airline...

In this article we examine volatility measures and investigate what factors explain price volatility in different US domestic air routes. We find that volatility remains reasonably stable up to 2 weeks prior to the flight, at which point it increases significantly. The type, LCC or legacy...

We study a profit-maximising airport under one- and two-sided market structures. Our analysis reveals that the airport management will choose the welfare maximising price structure based on market characteristics and demand complementarity. We find that, in contrast with the traditional...