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Airfares and Competition on International Routes

John Bitzan, Alice Kones and James Peoples

A chapter in The Economics of International Airline Transport, 2014, vol. 4, pp 151-176 from Emerald Publishing Ltd

Abstract: Abstract This chapter uses airline data on fares, traffic, and flight characteristics to estimate a series of fare equations for international flights. The results are used to examine the role of international competition as a determinant of fares along international flights originating or departing from the United States. Findings suggest that actual and potential competition are important determinants of international airfares. We interpret these results as indicating that pricing behavior along US–international routes is consistent with the theory of imperfect contestability.

Keywords: Imperfect contestability; international air fares; Open Skies Agreements; cabotage; L93; L11 (search for similar items in EconPapers)
Date: 2014
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