Domestic Code Sharing, Alliances, and Airfares in the U.S. Airline Industry
AbstractThis paper examines the impact of domestic code-sharing alliances on airfares. Our analysis yields two novel and somewhat surprising findings that have yet to be documented in the literature. First, unlike with international code sharing, we find that the overwhelming majority of domestic code-share itineraries involve a single operating carrier, a phenomenon that we refer to as virtual code sharing. Second, we find that these virtual code-sharing itineraries are priced lower than itineraries operated and marketed by a single carrier in the same market. We suggest that carriers may be using virtual code sharingâ€”in large partâ€”as a generic product to compete for the most price-sensitive passengers.
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 University of Chicago Press in its journal The Journal of Law and Economics.
Volume (Year): 50 (2007)
Issue (Month): ()
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JLE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Philip G. Gayle, 2013. "On the Efficiency of Codeshare Contracts between Airlines: Is Double Marginalization Eliminated?," American Economic Journal: Microeconomics, American Economic Association, vol. 5(4), pages 244-73, November.
- Bilotkach, Volodymyr & Gorodnichenko, Yuriy & Talavera, Oleksandr, 2012.
"Sensitivity of prices to demand shocks: A natural experiment in the San Francisco Bay Area,"
Transportation Research Part A: Policy and Practice,
Elsevier, vol. 46(7), pages 1137-1151.
- Volodymyr Bilotkach & Yuriy Gorodnichenko & Oleksandr Talavera, 2010. "Sensitivity of Prices to Demand Shocks: A Natural Experiment in the San Francisco Bay Area," University of East Anglia Applied and Financial Economics Working Paper Series 004, School of Economics, University of East Anglia, Norwich, UK..
- Goetz, Christopher F. & Shapiro, Adam Hale, 2012. "Strategic alliance as a response to the threat of entry: Evidence from airline codesharing," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 735-747.
- Chen, Yongmin & Gayle, Philip, 2013. "Mergers and Product Quality: Evidence from the Airline Industry," MPRA Paper 51238, University Library of Munich, Germany.
- Chun, So Yeon & Kleywegt, Anton J & Shapiro, Alexander, 2011.
"Revenue management in resource exchange seller alliances,"
34657, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.