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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/5141

Title: Airline market power and intertemporal price dispersion
Authors: Gaggero, Alberto A.
Piga, Claudio
Keywords: Intertemporal pricing
Competition
Price dispersion
Issue Date: 2009
Publisher: © Loughborough University
Series/Report no.: Loughborough University. Department of Economics. Discussion Paper Series;WP 2009 - 10
Abstract: This paper analyzes the empirical relationship between market structure and price dispersion in the airline markets connecting the UK and the Republic of Ireland. Price dispersion is measured by a number of inequality indexes, calculated using fares posted on the Internet at specific days before takeoff. We find a negative correlation between market dominance and price dispersion; thus competition appears to hinder the airlines' ability to price discriminate to exploit consumers' heterogeneity in booking time preferences. Moreover, in the Christmas and Easter periods of high demand, fares are less dispersed, possibly because airlines target a less heterogenous set of consumers.
Description: This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2009_10.html
Version: Accepted for publication
URI: https://dspace.lboro.ac.uk/2134/5141
ISSN: 1750-4171
Appears in Collections:Working Papers (Economics)

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