Airline daily fare differentiation in a medium-size travel market

Kofi Obeng

Journal of Air Transport Management, 2008, vol. 14, issue 4, 168-174

Abstract: This paper examines variation in airline fares for trips in a medium-size travel market. It develops a conceptual model of fares offered, and uses daily information about fare, plane and flight characteristics, and trip characteristics easily available on the internet. Based on this information it estimates a two-way fixed effects model of airline fares. The results show large differences in fares among the airlines, large variation in daily fares offered, and provide evidence of fare differentiation in the travel market analyzed.

Keywords: Fare differentiation; Fixed effects; Medium-size city; Competition; Inelastic demand; Fare discount; Fare premium (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:14:y:2008:i:4:p:168-174

DOI: 10.1016/j.jairtraman.2008.04.001

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