This paper investigates why passengers pay substantially different fares for travel on the same airline between the same two airports. We investigate questions that are fundamentally different from those in the existing literature on airline price dispersion. We use a unique new dataset to test...

We examine the relationship between nonlinear pricing and consumer search costs in the airline industry during a period of increasing Internet use. We find that higher Internet usage increases the spread between unrestricted and restricted fares. We also find that the ratio of unrestricted to...

This paper investigates why passengers pay substantially different fares for travel on the same airline between the same two airports. We investigate questions that are fundamentally different from those in the existing literature on airline price dispersion. We use a unique new dataset to test...