Dynamic price competition in air transport market, An analysis on long-haul routes

Chantal Roucolle (), Catherine Müller and Miguel Urdanoz ()
Additional contact information
Catherine Müller: Toulouse Business School - Toulouse Business School
Miguel Urdanoz: Toulouse Business School - Toulouse Business School

Post-Print from HAL

Abstract: We study airline price competition on long - haul markets. Our analysis includes the two main determinant s of airline pricing strategies: average level of price and price dispersion. This joint analysis is particularly relevant on mature market where airlines face an increasing competitive pressure from incumbents and potential entrants. To lower price competition, they tend to differentiate their products and use complex discriminatory practices on the basis of their Revenue Management process . The price level and dispersion are jointly affected by a number of common factors. The level of competition and the date of booking compared to the day to departure appear to have a particular relevance. It's much noticing that in the airline Revenue Management process these two elements are taken into consideration. Much of the models developed in the empirical literature use the information freely provided by the US DB1B database . This restricts the empirical analysis to the US market, but most obviously the restriction lies in the quarterly nature of the data . The day of purchase is not observed and the data are quarterly aggregated.

Keywords: Air transportation; Price discrimination; Oligopoly pricing; Panel data (search for similar items in EconPapers)
Date: 2016-07-10
References: Add references at CitEc
Citations:

Published in WCTR 2016, 14th World Conference on Transport Research, Jul 2016, Shanghai, China

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Dynamic Price Competition in the Air Transport Market: An Analysis on Long-Haul Routes (2018)
Working Paper: Dynamic price competition in air transport market, An analysis on long-haul routes (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02137817

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().