IDEAS home Printed from https://ideas.repec.org/a/ids/ijemre/v6y2015i4p339-358.html
   My bibliography  Save this article

An empirical analysis of online price dispersion in the Italian airline industry

Author

Listed:
  • Paolo Roma
  • Fabio Zambuto
  • Gandolfo Dominici

Abstract

Firms operating in the electronic marketplace set and adjust prices to affect demand and profitability. In service markets, such as airline markets, different prices are commonly offered by diverse firms to accommodate to a variety of market segments having particular sets of consumer attitudes. This variation in prices is the price dispersion and is based on market distinctiveness deriving from customer heterogeneity as well as the peculiar competition in the specific market arena. In this paper we use a panel dataset from the Italian airline market to investigate the role of competition and different online channels in the emergence of price dispersion. Specifically, we examine the unclear role of competition in price dispersion with novel data collected from different online channels, namely direct and Online Travel Agency (OTA) channels. We find that price dispersion is higher in routes where competition is higher even in presence of only one segment, namely the business segment. Our results also show that price dispersion significantly differs across different types of online channels.

Suggested Citation

  • Paolo Roma & Fabio Zambuto & Gandolfo Dominici, 2015. "An empirical analysis of online price dispersion in the Italian airline industry," International Journal of Electronic Marketing and Retailing, Inderscience Enterprises Ltd, vol. 6(4), pages 339-358.
    • Handle: RePEc:ids:ijemre:v:6:y:2015:i:4:p:339-358
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=73481
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Guoquan & Zhang, Yahua, 2020. "Understanding airline price dispersion in the presence of high-speed rail," Transport Policy, Elsevier, vol. 95(C), pages 93-102.
    2. van Cranenburgh, Sander & Chorus, Caspar G., 2017. "Willingness to Pay-inference in the absence of rejected propositions," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 35-42.
    3. Huang, Zhibin & Yong, Jianming & Ma, Wenliang & Chen, Mengying & Xiong, Zihan & Shrestha, Anup, 2022. "Internet penetration and airline pricing: Evidence from China," Transport Policy, Elsevier, vol. 123(C), pages 104-111.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijemre:v:6:y:2015:i:4:p:339-358. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=43 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.