An Empirical Analysis of Marketing Alliances Between Major US Airlines
The paper proposes an empirical framework with endogenous flight frequency and quantity decisions on an airline market. The framework is built around the hypothesis that passengers value not only the ticket price but also the cost of delay associated with an airline. At sample mean values, the cost of delay is estimated to account for 34% of the \$280 full price of a seat on a flight.
|Date of creation:||01 Aug 2000|
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- Gasmi, Farid & Laffont, Jean-Jacques & Vuong, Quang, 1992.
"Econometric Analysis of Collusive Behavior in a Soft Drink Market,"
IDEI Working Papers
16, Institut d'Économie Industrielle (IDEI), Toulouse.
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- Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
- Timothy F. Bresnahan & Peter C. Reiss, 1990. "Entry in Monopoly Market," Review of Economic Studies, Oxford University Press, vol. 57(4), pages 531-553.
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