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This paper develops an empirical model of online airfare determinants to inspect the impact of the entry of a low-cost carrier (LCC). In particular, we investigate whether the increased competition from a recently established LCC induces major carriers to respond in two competitive dimensions:...
Persistent link: https://www.econbiz.de/10012982770
the price dispersion in U.S airline industry. Monopoly seller uses a menu of refund contracts to sequentially screen … heterogeneous travelers who purchase the tickets before travel uncertainty is fully resolved. Airline finds it optimal to sell fully …
Persistent link: https://www.econbiz.de/10014133147
Using more than 10 million on-line fares, we study the determinants of yearly fares' changes in June 2002-June 2005. We verify whether airlines took advantage, after the Euro introduction, of potential inflationary pressures by increasing their fares more in routes to Eurozone nations. The...
Persistent link: https://www.econbiz.de/10014057881
Recent code-share agreements among major US airlines represent a significant development in the airline industry, as …
Persistent link: https://www.econbiz.de/10014060564
The relationship between air traffic delays and competition has received much attention recently. I estimate the price responses to longer flight delays in competitive and non-competitive markets, using a policy change to instrument for potentially endogenous flight delays in the price...
Persistent link: https://www.econbiz.de/10014070769
paid for airline tickets. The analysis also investigates the effects of changes in the percentage of online transactions on … analysis of the factors affecting airline price levels and price dispersion, contributing more generally to our understanding … of airline pricing. Our novel data set includes detailed transaction level data that includes ticket characteristics and …
Persistent link: https://www.econbiz.de/10014026685
Manufacturers of durable goods can encourage consumers facing transaction costs to upgrade by accepting used units as trade-ins. These "buyback schemes" increase demand for new units, but increase the supply of used units if trade-ins are resold. In this paper, I investigate the equilibrium...
Persistent link: https://www.econbiz.de/10013388853
interconnected capacity constraints. I estimate a dynamic structural model of airline network pricing with a novel high frequency … moments, I resolve the classic econometric issues of endogeneity, censoring, and truncation in order to recover the airline … externalities are transmitted in the network. I show that when the airline strategically prices itineraries jointly in their network …
Persistent link: https://www.econbiz.de/10013231146
Between 1995 and 2004, I find that airline prices fell more than 20% adjusted for inflation. I also show that premia at …
Persistent link: https://www.econbiz.de/10014066690
a rapidly expanding low-cost carrier - the Brazilian airline industry in the early 2000s. We estimate the timing and the …
Persistent link: https://www.econbiz.de/10014189110