EconPapers    
Economics at your fingertips  
 

On the Extent to which the Presence of Intermediate-stop(s) Air Travel Products Influences the Pricing of Nonstop Air Travel Products

Philip Gayle () and Wu Chi-Yin
Additional contact information
Wu Chi-Yin: Department of Economics, Feng Chia University, 100 Wenhwa Rd., Seatwen, Taichung, Taiwan, 40724

Review of Network Economics, 2014, vol. 13, issue 3, 355-395

Abstract: Analysts of air travel markets, which include antitrust authorities, are interested in understanding the extent to which the presence of intermediate stop(s) products influences the pricing of nonstop products. This paper uses a structural econometric model to investigate the potential pricing interdependence between these two product types in domestic air travel markets. Counterfactual experiments using the estimated model suggest that in many (but far from a majority) markets the current prices of nonstop products are at least 5% lower than they would otherwise be owing to the presence of intermediate-stop(s) products.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/rne.2014.13.issue ... -0023.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: On the Extent to which the Presence of Intermediate-stop(s) Air Travel Products Influences the Pricing of Nonstop Air Travel Products (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:rneart:v:13:y:2014:i:3:p:355-395:n:5

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/rne

Access Statistics for this article

Review of Network Economics is currently edited by Lukasz Grzybowski

More articles in Review of Network Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2020-12-31
Handle: RePEc:bpj:rneart:v:13:y:2014:i:3:p:355-395:n:5