The impact of hub hierarchy and market competition on airfare pricing in US hub-to-hub markets

Shengrun Zhang, Ben Derudder and Frank Witlox

Journal of Air Transport Management, 2013, vol. 32, issue C, 65-70

Abstract: This paper explores factors influencing the pricing behaviour of full-service carriers in hub-to-hub markets, which to date have rarely been the exclusive focus of research. Drawing on a 2009 dataset containing route and airfare information, we estimate a pricing model for the hub-to-hub markets in the United States. Our econometric analysis suggests that an airport's position in carriers' hub hierarchies, competition from low-cost carriers, and other market structure variables influence average airfares.

Keywords: Hub hierarchy; Airfare pricing; Competition; Full-service carriers (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:32:y:2013:i:c:p:65-70

DOI: 10.1016/j.jairtraman.2013.06.016

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