Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating … third equation, which endogenizes costs. We implement the model using data for eight European airlines from 1976-1994, and … show that the treatment of endogenous costs has important implications for the measurement of price-cost margins and the …

Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating … third equation, which endogenizes costs. We implement the model using data for eight European airlines from 1976-1994, and … show that the treatment of endogenous costs has important implications for the measurement of price-cost margins and the …

Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating … third equation, which endogenizes costs. We implement the model using data for eight European airlines from 1976-1994, and … show that the treatment of endogenous costs has important implications for the measurement of price-cost margins and the …

We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish …

the collusive outcome, which is equivalent to joint profit-maximization. Rather, the test statistic suggests that behavior … oligopoly. In the second part of the paper, a cross-section pricing regression complements the Rosse-Panzar test. It shows that …

highlight substantial variations in pricing dynamics that are consistent with a theory of intertemporal price discrimination …

suggests that the societal costs of airport congestion can go well beyond the negative congestion externality and should also …