U.S. Domestic Airline Pricing, 1995-2004
AbstractBetween 1995 and 2004, I find that airline prices fell more than 20% adjusted for inflation. I also show that premia at hub airports declined and that there is now substantially less disparity between the cheaper and more expensive airports than there was a decade ago. Still, I find that prices remain quite high at a few dominated airports.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0504016.
Length: 18 pages
Date of creation: 14 Apr 2005
Date of revision:
Note: Type of Document - pdf; pages: 18
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Airline Competition; Airline Hubs; Price Indices;
Other versions of this item:
- Severin Borenstein, 2005. "U.S. Domestic Airline Pricing, 1995-2004," Macroeconomics 0501006, EconWPA.
- Borenstein, Severin, 2005. "U.S. Domestic Airline Pricing, 1995-2004," Competition Policy Center, Working Paper Series qt7dj5k2qq, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
- NEP-COM-2005-04-16 (Industrial Competition)
- NEP-IND-2005-04-16 (Industrial Organization)
- NEP-MAC-2005-04-16 (Macroeconomics)
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- Steven Berry & Panle Jia, 2008.
"Tracing the Woes: An Empirical Analysis of the Airline Industry,"
NBER Working Papers
14503, National Bureau of Economic Research, Inc.
- Steven Berry & Panle Jia, 2010. "Tracing the Woes: An Empirical Analysis of the Airline Industry," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 1-43, August.
- 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.
- Katz, Donald S. & Garrow, Laurie A., 2014. "Revenue and operational impacts of depeaking at U.S. hub airports," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 57-64.
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