dynamic airline pricing accounting for both sources of price adjustments using novel flight-level data. I use the model … estimates to evaluate the welfare effects of dynamic airline pricing. Relative to uniform pricing, dynamic pricing benefits …

estimate a model of dynamic airline pricing accounting for both forces with new flight-level data. With the model estimates, I … demand. I show that dynamic airline pricing expands output by lowering fares charged to early-arriving, price … are then charged high prices. I find that dynamic airline pricing increases total welfare relative to a more restrictive …