Semantic Scholar Open Access 1994 605 sitasi

Competition and Price Dispersion in the U.S. Airline Industry

S. Borenstein N. Rose

Lihat Sumber DOI

Abstrak

We study dispersion in the prices an airline charges to different passengers on the same route. This variation in fares is substantial: the expected absolute difference in fares between two passengers on a route is 36 percent of the airline's average ticket price. The pattern of observed price dispersion cannot easily be explained by cost differences alone. Dispersion increases on routes with more competition or lower flight density, consistent with discrimination based on customers' willingness to switch to alternative airlines or flights. We argue that the data support models of price discrimination in monopolistically competitive markets.

Topik & Kata Kunci

Economics

Penulis (2)

S. Borenstein

N. Rose

Format Sitasi

APA MLA BibTeX

Borenstein, S., Rose, N. (1994). Competition and Price Dispersion in the U.S. Airline Industry. https://doi.org/10.1086/261950

Akses Cepat

Lihat di Sumber doi.org/10.1086/261950

Informasi Jurnal

Tahun Terbit: 1994
Bahasa: en
Total Sitasi: 605×
Sumber Database: Semantic Scholar
DOI: 10.1086/261950
Akses: Open Access ✓