Are Airlines' Price-Setting Strategies Different?

Volodymyr Bilotkach, Yuriy Gorodnichenko, Oleksandr Talavera and Igor Zubenko

No 645, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

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.

Keywords: airline industry; price dynamics (search for similar items in EconPapers)
JEL-codes: L93 D21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ind, nep-mic and nep-ure
Date: Written

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