Are Airlines' Price-Setting Strategies Different?

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Are Airlines' Price-Setting Strategies Different?

Author Info

Volodymyr Bilotkach
Yuriy Gorodnichenko
Oleksandr Talavera
Igor Zubenko

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Abstract

Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in price-setting strategies among the carriers competing on a particular route are documented.

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Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 645.

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Length: 12 p.
Date of creation: 2006
Date of revision:
Handle: RePEc:diw:diwwpp:dp645

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Find related papers by JEL classification:
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-01-02 (All new papers)
NEP-CSE-2007-01-02 (Economics of Strategic Management)
NEP-IND-2007-01-02 (Industrial Organization)
NEP-MIC-2007-01-02 (Microeconomics)
NEP-URE-2007-01-02 (Urban & Real Estate Economics)

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This page was last updated on 2009-11-28.

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