This paper develops a theoretical model for the optimal design of airfare as options under capacity constraint to study the price dispersion in U.S airline industry. Monopoly seller uses a menu of refund contracts to sequentially screen heterogeneous travelers who purchase the tickets before...

This paper uses a unique individual transactions data set to investigate the effects of internet purchase on the prices paid for airline tickets. The analysis also investigates the effects of changes in the percentage of online transactions on both online and offline prices and on price...

This paper uses a unique individual transactions data set to investigate the effects of internet purchase on the prices paid for individual airline tickets. The analysis also investigates the effects of changes in the percentage of online transactions on both online and offline prices and on...

In product markets, there exists substantial dispersion in prices for transactions of physically identical goods, and incumbent sellers sell at higher prices than entrants. This study develops a theory of dynamic pricing that explains these facts as results from the same fundamental friction:...

We compile a new database of grocery prices in Argentina, with over 9 million observations per day. We find uniform pricing both within and across regions - i.e., product prices almost do not vary within stores of a chain. Uniform pricing implies that prices would not change with regional...