. The turmoil in the U.S. airline industry has triggered much of the public policy discussion, as some observers have argued … and their rivals. The data suggest that an airline's prices typically decline somewhat before it files for bankruptcy … bankrupt airline lower their prices, however, nor that they lose passengers to their bankrupt rival. These results indicate …

a route averages thirty-six percent of the airline's average ticket price on the route. The pattern of price dispersion …This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such … variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on …

Between 1995 and 2004, I find that airline prices fell more than 20% adjusted for inflation. I also show that premia at …