Abstract

http://ssrn.com/abstract=1733403
 


 



Pricing Dynamics in the Australian Airline Market


Nicolas De Roos


University of Sydney

Gordon Mills


University of Sydney - Faculty of Economics

Stephen Whelan


University of Sydney

November 23, 2010

Economic Record, Vol. 86, Issue 275, pp. 545-562, 2010

Abstract:     
We examine price dispersion in a large dataset of Australian domestic airfares. The airlines vary the lowest available fares on successive booking days by restricting the menu of available ticket types, and by changing the prices for some of those types. Our fixed-effects estimator allows us to characterise both of those mechanisms. The greatest price variation occurs on routes involving competition between the two main airlines, Qantas and Virgin; there is greater variation on monopoly routes than on routes pitting Virgin against the Qantas subsidiary, Jetstar. The lowest fares rise rapidly in the week before travel.

Number of Pages in PDF File: 18

JEL Classification: L13, L93

Accepted Paper Series





Date posted: January 1, 2011  

Suggested Citation

de Roos, Nicolas and Mills, Gordon and Whelan, Stephen, Pricing Dynamics in the Australian Airline Market (November 23, 2010). Economic Record, Vol. 86, Issue 275, pp. 545-562, 2010. Available at SSRN: http://ssrn.com/abstract=1733403 or http://dx.doi.org/10.1111/j.1475-4932.2010.00653.x

Contact Information

Nicolas De Roos (Contact Author)
University of Sydney ( email )
University of Sydney
Sydney NSW 2006
Australia
Gordon Mills
University of Sydney - Faculty of Economics ( email )
Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia
Stephen Whelan
University of Sydney ( email )
University of Sydney
Sydney, NSW 2006
Australia
612-9036 9251 (Phone)
612-9351-4341 (Fax)
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