We consider a multi-period, limited capacity, unsegmented airline pricing model whose solution returns a sequence of increasing prices based on the order of sale. We show that a positive demand shock corresponding to an increase in the arrival rate reduces within-period price dispersion and has...

Three forces affect the pricing of a firm's inventory over time, if it can sell multiple units before any price adjustment takes place. Perishability drives prices down; scarcity and intertemporal price discrimination up. Hidden prices arise because all items, even if not immediately up for...

Using data from easyJet, Ryanair and Southwest, we show that for their flights these airlines set a sequence, based on the seats' order of sale, of non-strictly monotone increasing fares. A model where prices cannot be continuously adjusted due to organizational frictions and technological...