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U.S. Domestic Airline Pricing, 1995-2004

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  • Severin Borenstein

    (Haas School of Business, University of California, Berkeley)

Abstract

Between 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.

Suggested Citation

  • Severin Borenstein, 2005. "U.S. Domestic Airline Pricing, 1995-2004," Industrial Organization 0504016, EconWPA.
  • Handle: RePEc:wpa:wuwpio:0504016 Note: Type of Document - pdf; pages: 18
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. Israel Mark & Keating Bryan & Rubinfeld Daniel L. & Willig Bobby, 2013. "Airline Network Effects and Consumer Welfare," Review of Network Economics, De Gruyter, vol. 12(3), pages 287-322, November.
    4. 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.

    More about this item

    Keywords

    Airline Competition; Airline Hubs; Price Indices;

    JEL classification:

    • 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

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