Are Airlines' Price Setting Strategies Different?
Newcastle Business School
University of East Anglia
University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)
Ostroh Academy National University
Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in price-setting strategies among the carriers competing on a particular route are documented.
Number of Pages in PDF File: 12
Keywords: airline industry, price dynamics
JEL Classification: L93, D21working papers series
Date posted: December 26, 2006
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