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Are Airlines' Price Setting Strategies Different?


Volodymyr Bilotkach


Newcastle Business School

Oleksandr Talavera


University of East Anglia

Yuriy Gorodnichenko


University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Igor Zubenko


Ostroh Academy National University
October 2006


Abstract:     
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, D21

working papers series


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Date posted: December 26, 2006  

Suggested Citation

Bilotkach, Volodymyr , Talavera, Oleksandr, Gorodnichenko, Yuriy and Zubenko, Igor, Are Airlines' Price Setting Strategies Different? (October 2006). Available at SSRN: http://ssrn.com/abstract=953507 or http://dx.doi.org/10.2139/ssrn.953507

Contact Information

Volodymyr Bilotkach (Contact Author)
Newcastle Business School ( email )
Newcastle upon-Tyne, NE1 8ST
United Kingdom
Oleksandr Talavera
University of East Anglia ( email )
Norwich, Norfolk NR4 7TJ
United Kingdom
Yuriy Gorodnichenko
University of California, Berkeley - Department of Economics ( email )
549 Evans Hall #3880
Berkeley, CA 94720-3880
United States
HOME PAGE: http://www.econ.berkeley.edu/~ygorodni/index.htm
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Igor Zubenko
Ostroh Academy National University ( email )
Seminarska Str. 2
Ostroh 265620
Ukraine
Feedback to SSRN (Beta)


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