We consider a conduct parameter model where firms price discriminate based on the consumers' willingness to pay. For any conduct, the average price is invariant to the extent of price discrimination. Moreover, when the number of prices goes to infinity, there is a linear relationship between...

We propose conduct parameter based market power measures within a model of price discrimination, extending work by Hazledine (2006) and Kutlu (2012) to certain forms of second degree price discrimination. We use our model to estimate the market power of U.S. airlines in a price discrimination...

In this study we analyze the determinants of airline price dispersion. We particularly concentrate on the conduct and marginal cost efficiency. The effect of conduct on price dispersion seems to depend on the characteristics of the market. For the big city routes, we observe positive effect; and...