On-line Booking and Revenue Management: Evidence from a Low-Cost Airline

Marco Alderighi and Claudio Piga
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Marco Alderighi: Universita' della Valle d'Aosta, Italy

Review of Economic Analysis, 2010, vol. 2, issue 3, 272-286

Abstract: Using unique data on a low-cost airline posted prices and seat availability, this study sheds some light on whether the airline's actual practice of yield management techniques con- forms with some predictions from economic models of peak-load pricing under demand uncertainty. On the one hand, robust support is found to the notion that prices increase as the seat availability decreases; on the other, theoretical models that do not account for stochastic peak-load pricing fail to capture an important source of dispersion in the data.

Keywords: Inter-temporal pricing; competition; price dispersion (search for similar items in EconPapers)
JEL-codes: D43 L10 L93 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:2:y:2010:i:3:p:272-286

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