IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v45y2009i5p710-724.html
   My bibliography  Save this article

Carriers' pricing behaviors in the United States airline industry

Author

Listed:
  • Chi, Junwook
  • Koo, Won W.

Abstract

This paper examines the pricing behaviors of United States air carriers in domestic markets. With quarterly observations in 2000 and 2005, we use a heteroskedasticity-adjusted Instrumental Variable technique to investigate the carriers' pricing strategies. The results show differential pricing strategies practiced by United States air carriers. American, United, Continental, and Northwest Airlines have higher airfares than Delta and Southwest Airlines in 2005. In 2000, all the carriers, except Delta have the same relationships with airfares. Furthermore, the findings suggest that the carriers' pricing strategies can vary under the same market condition, indicating that carriers' managerial decisions may influence their airfares.

Suggested Citation

  • Chi, Junwook & Koo, Won W., 2009. "Carriers' pricing behaviors in the United States airline industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 710-724, September.
    • Handle: RePEc:eee:transe:v:45:y:2009:i:5:p:710-724
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554509000441
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2012. "Competition in the European aviation market: the entry of low-cost airlines," Journal of Transport Geography, Elsevier, vol. 24(C), pages 223-233.
    2. Pagoni, Ioanna & Psaraki-Kalouptsidi, Voula, 2016. "The impact of carbon emission fees on passenger demand and air fares: A game theoretic approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 41-51.
    3. Bedford, James & Bilotkach, Volodymyr, 2022. "Competition on the UK-Australasia market: Evidence from transaction data," Transport Policy, Elsevier, vol. 122(C), pages 54-63.
    4. Manuela Jr., Wilfred S. & Rhoades, Dawna L. & Curtis, Tamilla, 2019. "Market power at the Seattle-Tacoma International Airport: The case of Alaska Airlines," Transport Policy, Elsevier, vol. 76(C), pages 90-99.
    5. Soyk, Christian & Ringbeck, Jürgen & Spinler, Stefan, 2021. "Effect of long-haul low-cost carriers on North Atlantic air fares," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    6. Zou, Bo & Hansen, Mark, 2014. "Flight delay impact on airfare and flight frequency: A comprehensive assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 54-74.
    7. Miyoshi, Chikage & Rubio Molina-Prados, Jesus, 2022. "Measuring the impact of long-haul low-cost carriers on lowering fares: A quasi-experimental design to assess the pre-COVID market," Transport Policy, Elsevier, vol. 128(C), pages 52-64.
    8. Chen, Ruowei & Lei, Zheng, 2017. "Airport dominance and airline pricing power: An investigation of hub premiums in the Chinese domestic market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 509-524.
    9. Zhang, Shengrun & Derudder, Ben & Witlox, Frank, 2013. "The impact of hub hierarchy and market competition on airfare pricing in US hub-to-hub markets," Journal of Air Transport Management, Elsevier, vol. 32(C), pages 65-70.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:45:y:2009:i:5:p:710-724. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.