This article provides jet fuel demand projections at the worldwide level and for eight geographical zones until 2025. Air traffic forecasts are performed using dynamic panel-data econometrics. Then, the conversion of air traffic projections into quantities of jet fuel is accomplished by using a...

The purpose of this paper is to test the nature of competition concerning price and capacity setting in the Norwegian airline industry after the deregulation in 1994. Did the two airlines, SAS and Braathens, compete on prices and capacities (competition), collude on prices and capacities...

We use unique data sets with round-the-clock posted fares and a regression discontinuity design to identify price discrimination in advance-purchase discounts. Price discrimination increases fares by 14% between two and one week before departure, and by 7.6% between three and two weeks to...

We propose a new approach to identify unobserved consumer types and assess whether firms price discriminate. We use a finite mixture structure to separate between consumer types under incomplete information. Unlike other screening schemes that rely on quantity discounts or product...

We study the link between air accessibility (measured by non-stop flights offer) and the manufacturing export of the Italian regions in Europe using a panel of 12,000 half-yearly observations ranging from 1998 to 2010. The analysis shows that the supply of non-stop flights provided by...

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...

This paper finds empirical support to systematic peak-load pricing in airlines---higher fares in ex-ante known congested periods. It estimates a congestion premia and supports the main empirical prediction in Gale and Holmes (1993) [Gale, I., Holmes, T., 1993. Advance-purchase discounts and...

Prices for the same flight change substantially depending on the time of purchase. This paper uses a unique dataset with round-the-clock posted fares to document significant within-day price variation. Labeling time-variation as discriminatory is difficult because the cost of an unsold airline...