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National borders substantially matter in passenger air traffic. Empirical estimates based upon a new data set on domestic and international departures from German airports indicate that the German border reduces air traffic activity by a factor of four to five. This result adds a further piece...
Persistent link: https://www.econbiz.de/10001732235
several ways. The forecasts are based on a seasonal Box-Jenkins model (SARIMA), which is adequate to forecast monthly air … forecast horizons from one to twelve months-ahead, which are based on different average estimation windows, expanding windows … structural break. The forecast exercise shows that the average window forecasts mostly outperform the alternative single window …
Persistent link: https://www.econbiz.de/10010367205
This paper uses an original panel dataset with posted prices and sales to estimate a dynamic demand. We find that consumers become more price sensitive as time to departure nears which is consistent with having lower valuations. This result provides empirical support to a key theoretical...
Persistent link: https://www.econbiz.de/10013001154
American, Delta, and United have organized their operations into extensive hub-and-spoke networks that typically require passengers originating and concluding travel in non-hub cities to board a connecting flight at a hub en route to the final destination. From the passenger perspective,...
Persistent link: https://www.econbiz.de/10012853304
We propose an approach to modeling and estimating discrete choice demand that allows for a large number of zero sale observations, rich unobserved heterogeneity, and endogenous prices. We do so by modeling small market sizes through Poisson arrivals. Each of these arriving consumers then solves...
Persistent link: https://www.econbiz.de/10013312178
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
Purpose: Investigation of the relation between firms’ values and aviation fuel hedging activities via a dynamic panel data methodology for the major U.S. passenger airlines during the period 2002-2011. Design/methodology/approach: We use data from nine U.S. major passenger airlines...
Persistent link: https://www.econbiz.de/10011824300
This paper uses an original panel dataset with posted prices and sales to estimate a dynamic demand. We find that consumers become more price sensitive as time to departure nears which is consistent with having lower valuations. This result provides empirical support to a key theoretical...
Persistent link: https://www.econbiz.de/10011402309
Persistent link: https://www.econbiz.de/10003485420
Persistent link: https://www.econbiz.de/10011883679