Author: Jeremy A. Verlinda
Publisher:
ISBN:
Category : Airlines
Languages : en
Pages : 56

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Book Description

Author: Jeremy A. Verlinda
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper extends the existing literature on the effect of market structure on price dispersion in airline fares by modeling the effect at the disaggregate ticket level. Whereas past studies rely on aggregate measures of price dispersion such as the gini coefficient or the standard deviation of fares, this paper estimates the entire empirical distribution of airline fares and documents how the shape of the distribution is determined by market structure. Specifically, I find that monopoly markets favor a wider distribution of fares with more mass in the tails while duopoly and competitive markets exhibit a tighter fare distribution. These findings indicate that the dispersion of airline fares may result from the efforts of airlines to practice second-degree price discrimination.

Author: Volodymyr Bilotkach
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
We analyze a sample of fare quotes, collected from the three leading on-line travel agents on fifty large US airline markets. Looking at the lowest fares available, we determine competition between the travel agents ensures the consumer can get a better deal. The travel agents compete more on those airline markets which are less competitive. Also, we find individual agents appear to discriminate for or against individual airlines when deciding whether or not to report airlines' lowest offered fare quotes. As different agents discriminate for/against different airlines, we conjecture that what we observe resembles a 'market-sharing' arrangement.

Author: Giovanni Alberto Tabacco
Publisher: Springer
ISBN: 3319467298
Category : Business & Economics
Languages : en
Pages : 88

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Book Description
This book presents an original empirical investigation of the market structure of airline city pair markets, shedding new light on the workings of competitive processes between firms. Examining a cross-section of US airline city pairs, Tabacco proposes for the first time that the industry can be understood as a natural oligopoly, each airline market being dominated by one to three airline carriers regardless of market size. The author questions the extent to which airlines deliberately prevent head-to-head competition within city pair markets, and draws intriguing conclusions about competitive forces from the observed market structure. Uncovering some of the main corporate strategies of the airline industry, the book is of immediate relevance to industry managers and practitioners, as well as academic economists.

Author: William W. Nye
Publisher:
ISBN:
Category : Antidumping duties
Languages : en
Pages : 46

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Book Description

Author: Eric Emch
Publisher:
ISBN:
Category : Affinity credit cards
Languages : en
Pages : 48

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Book Description

Author: Dean V. Williamson
Publisher:
ISBN:
Category : Investment analysis
Languages : en
Pages : 68

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Book Description

Author: Ken Heyer
Publisher:
ISBN:
Category : Antitrust law
Languages : en
Pages : 44

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Book Description

Author: Sheldon Kimmel
Publisher:
ISBN:
Category : Antitrust law
Languages : en
Pages : 46

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Book Description

Author: Rafael Varella
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

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Book Description
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: pricing and distribution. We utilize an original database of airfares collected from the website of an online travel agent (OTA) comprising the domestic airport-pairs of the most populous metropolitan area in Brazil. We test whether incumbents reshape their airfare temporal profiles in an attempt to attract the price-sensitive passengers who constitute the target market of the newcomer. We find evidence that incumbents increase their airfare availability on the OTA by 11% and reduce fares by between 15% and 23% for advance purchases made approximately two months prior to departure. Our results suggest that LCC entry partially spoils the existing market segmentation schemes of incumbents, forcing them to revise their distribution management strategy, simplify their fare structure and migrate from a non-monotonic to a weakly monotonic price curve.