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Willingness to pay for airline services attributes: evidence from a stated preferences choice game


  • De Menezes, Antonio Gomes
  • Vieira, J. C.


We analyze consumer preferences for airline service attributes between Ponta Delgada and Lisbon: the most important air corridor between the Azores and Mainland Portugal. Owing to stringent regulations, which fall under the European Union Public Service Obligations (PSOs) domain, there are no revealed preferences data suitable to study consumer preferences. Hence, we conduct a stated preferences choice game and estimate a microeconometric model a’ la McFadden. Our results are statistically significant and imply willingness to pay measures economically high for attributes such as punctuality warranties and comfort. Willingness to pay for additional daily flights is quite low. This result is important to how should the policy maker liberalize this sector.

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  • De Menezes, Antonio Gomes & Vieira, J. C., 2008. "Willingness to pay for airline services attributes: evidence from a stated preferences choice game," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 39, pages 1-13.
  • Handle: RePEc:sot:journl:y:2008:i:39:p:1-13

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    References listed on IDEAS

    1. Cao, Xinyu & Mokhtarian, Patricia L., 2005. "How do individuals adapt their personal travel? A conceptual exploration of the consideration of travel-related strategies," Transport Policy, Elsevier, vol. 12(3), pages 199-206, May.
    2. Cao, Xinyu & Mokhtarian, Patricia L., 2005. "How do individuals adapt their personal travel? Objective and subjective influences on the consideration of travel-related strategies for San Francisco Bay Area commuters," Transport Policy, Elsevier, vol. 12(4), pages 291-302, July.
    3. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, April.
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    Cited by:

    1. Saffarzadeh, Mahmoud & Mazaheri, Akram & Tari, Majid Zabihi & Seyedabrishami, Seyedehsan, 2016. "Analysis of Iranian passengers' behavior in choosing type of carrier in international air travel to East Asia," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 123-130.


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