This paper explores airline pricing behaviour dealing with two issues. The first is to measure the extent to which intramodal competition influences fares charged to travellers. The second is to shed light on fares' intertemporal profile to verify if airlines undertake intertemporal price...

Dynamic pricing is increasingly popular in the perishable good markets, but its effect under competition is uncertain due to the potential for the prisoner's dilemma. I study profit and welfare implications of dynamic pricing techniques in a competitive setting. I construct a structural dynamic...

In this paper we study the impact of competition on the provision of quality in the US airline industry. Using changes in competition triggered by LCC entry and airline mergers, we find that an increase in competition increases the provision of quality of major incumbent and non-merging airlines...

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...

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...

Dynamic pricing is a common tool to maximize sales in markets for perishable goods with limited capacity and stochastic demand. We look at the relationship between dynamic pricing and oligopolistic competition in the airline industry. For this purpose, we estimate the dynamic oligopoly model of...

Using more than 10 million on-line fares, we study the determinants of yearly fares' changes in June 2002-June 2005. We verify whether airlines took advantage, after the Euro introduction, of potential inflationary pressures by increasing their fares more in routes to Eurozone nations. The...

This paper examines the economic consequences of code-sharing agreements (CSA) in the airline market. CSA can be viewed as a vertical contract between airlines, which sometimes co-own the code-shared flights. Our structural model aims to understand how and to what extent CSA distorts market...