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...

Consumer heterogeneity drives airlines to compete with each other through product lines, in the form of different flights and different ticket policies (e.g., change fee) on the same flight. Using ticket level data from a major Chinese online provider of travel services, we explore airlines'...

We investigate how firms' incentives to acquire customer data for targeted offers depend on its quality. A two-dimensional Hotelling model is proposed where consumers are heterogeneous both with respect to their locations and transportation cost parameters (flexibility). Firms have perfect data...