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...

Motivated by observations in the Norwegian airline industry in the late 90s, we develop a semicollusive model with collusion on gross prices and competition on contracts for large customers (corporate contracts). The theoretical predictions are tested on detailed data on gross prices, large...

This paper develops a model of post-liberalization price competition between airlines on the route Rio de Janeiro - São Paulo. The intense price competition episode culminated in the rupture of a thirty-nine year-old cooperative structure - the air shuttle service cartel. By modeling and...

This paper investigates the determinants and competitive effects of legacy carriers' outsourcing decision with independent regional airlines. Legacy carriers allocate a larger share of their operations to an independent regional airline partner compared to their own fleet or a wholly owned...

We provide an econometric framework for estimating a game of simultaneous entry and pricing decisions while allowing for correlations between unobserved cost and demand shocks. We use our framework to account for selection in the pricing stage. We estimate the model using data from the US...

We investigate the effect of competition on price dispersion in the airline industry. Using panel data from 1993 to 2008, we find a non-monotonic effect of competition on price dispersion. An increase in competition is associated with greater price dispersion in concentrated markets but is...