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We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish conditions under which the equilibrium is unique and converges to a system of differential equations. Using unique and comprehensive pricing and bookings data for competing...
Persistent link: https://www.econbiz.de/10013362001
Frequent Flier Programs (FFPs) are said to impact airline consumer behaviour such that revenue of sponsoring airlines … into a customer tier program on average transaction size, purchase frequency, revenues of the sponsoring airline, and …
Persistent link: https://www.econbiz.de/10010510073
Based on two strands of theoretical research, this paper provides new evidence on how fares are jointly affected by in-flight seat availability and purchasing date. As capacity-driven theories predict, it emerges that fares monotonically and substantially increase with the flights occupancy...
Persistent link: https://www.econbiz.de/10010343817
prediction that APDs are larger when the intensity of competition is higher using a sample of airline fare quotes. Our results … also suggest that airline price dispersion increases with the intensity of competition. …
Persistent link: https://www.econbiz.de/10012251366
I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the …
Persistent link: https://www.econbiz.de/10010412667
Scheduling coordination is said to be both a reason for and a consequence of airline consolidation. This paper offers a … first attempt to formally model this dimension of airline partnerships, in a simple setup of complementary alliance with … example of a complementary airline alliance hurting interline passengers, by offering them a better quality service at too …
Persistent link: https://www.econbiz.de/10012727245
This paper seeks to identify obstacles to competitive markets in formally liberalized service and network industries of fifteen European Union Member States. It is argued that loopholes in EU competition and state aid rules allow national governments to further subsidize previously monopolistic...
Persistent link: https://www.econbiz.de/10012733924
Convenient scheduling, characterized by adequate flight frequency, is the main quality attribute for airline services …. However, the effect of airline alliances on this important dimension of service quality has received almost no attention in …
Persistent link: https://www.econbiz.de/10012908676
This paper explores, both theoretically and empirically, the impact of granting antitrust immunity (ATI) to airline …
Persistent link: https://www.econbiz.de/10012898485
In this paper we study the impact of competition on the provision of quality in the US airline industry. Using changes … in competition triggered by LCC entry and airline mergers, we find that an increase in competition increases the …
Persistent link: https://www.econbiz.de/10013004573