An Empirical Analysis of Marketing Alliances Between Major US Airlines

Oliver Richard
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Oliver Richard: University of Rochester

No 1770, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: The paper proposes an empirical framework with endogenous flight frequency and quantity decisions on an airline market. The framework is built around the hypothesis that passengers value not only the ticket price but also the cost of delay associated with an airline. At sample mean values, the cost of delay is estimated to account for 34% of the \$280 full price of a seat on a flight.

Date: 2000-08-01
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