Are Airlines' Price-Setting Strategies Different?
AbstractUsing 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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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 645.
Length: 12 p.
Date of creation: 2006
Date of revision:
airline industry; price dynamics;
Other versions of this item:
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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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- Puller, Steven L. & Taylor, Lisa M., 2012. "Price discrimination by day-of-week of purchase: Evidence from the U.S. airline industry," Journal of Economic Behavior & Organization, Elsevier, vol. 84(3), pages 801-812.
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"Combined Effects of Load Factors and Booking Time on Fares: Insights from the Yield Management of a Low-Cost Airline,"
Quaderni di Dipartimento
171, University of Pavia, Department of Economics and Quantitative Methods.
- Marco Alderighi & Marcella Nicolini & Claudio A. Piga, 2012. "Combined Effects of Load Factors and Booking Time on Fares: Insights from the Yield Management of a Low-Cost Airline," Working Papers 2012.14, Fondazione Eni Enrico Mattei.
- Mantin, Benny & Koo, Bonwoo, 2009. "Dynamic price dispersion in airline markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(6), pages 1020-1029, November.
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