The effect of competition on price discrimination in the international flight market between the U.S. and China

Qingxin He

Economics of Transportation, 2016, vol. 7-8, 1-23

Abstract: This research offers new evidence on the relationship between competition and second-degree price discrimination in the airline industry using a unique micro data set on international flight ticket transactions between the U.S. and China. Due to the disaggregated nature of the transaction level data used in this analysis, I am able to precisely measure ticket restrictions/qualities and offer some plausible explanations for the restriction-specific effects of market competition on price discrimination. Overall, the results suggest that there is a negative relationship between price discrimination and market competition, which is consistent with the traditional wisdom that the ability to price discriminate will be deteriorated by less market concentration.

Keywords: L11; L93; Price discrimination; Market structure; Airline industry (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:7-8:y:2016:i::p:1-23

DOI: 10.1016/j.ecotra.2016.10.001

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