Chapter 5 Distribution of Airline Tickets: A Tale of Two Market Structures

Volodymyr Bilotkach and Marija Pejcinovska

A chapter in Pricing Behavior and Non-Price Characteristics in the Airline Industry, 2012, pp 107-138 from Emerald Group Publishing Limited

Abstract: The vertical relationships literature has considered situations where both producers and retailers have a degree of market power. On one hand, retailers may have certain freedom in deciding what price to charge to the final consumers. On the other hand, large retailers may also pressurize producers (Wal-Mart is a classic example; see alsoComanor and Rey (2000)for a formal treatment of this topic). At the same time, producers may pressurize retailers via resale price maintenance. The interplay of producers' and retailers' bargaining power, in addition to the structure (both horizontal and vertical) of product and distribution markets, eventually determine the sticker price faced by an unsuspecting consumer.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aiaezz:s2212-1609(2011)0000003007

DOI: 10.1108/S2212-1609(2011)0000003007

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