Price discrimination in Australasian air travel markets
AbstractThis paper explores oligopolistic pricing behaviour in the context of widespread price discrimination, as observed in domestic NZ and trans-Tasman air travel markets. These markets are of particular interest as being the domain of three substantial competition policy cases between 2002 and 2010, each involving proposals by Air New Zealand to form ‘alliances’ (cartels) with one of its competitors -- first, Qantas, and then Virgin Blue. Theoretical predictions are tested with internet-sourced pricing data covering the 2004--2006 period. It is found that market structure matters more for pricing in the ‘time-sensitive’ (business) sector of the market than for ‘price-sensitive’ leisure travellers. The implications drawn are that the regulatory authorities were correct to refuse permission for Air New Zealand's proposed alliances with Qantas, and may also be justified in their qualified approval of the 2010 proposal with Virgin Blue as a partner.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal New Zealand Economic Papers.
Volume (Year): 45 (2011)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://www.tandfonline.com/RNZP20
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.