Article ID Journal Published Year Pages File Type
1023977 Transportation Research Part E: Logistics and Transportation Review 2009 10 Pages PDF
Abstract

This study analyzes the factors that explain the variations of daily airfares across fare histories, or dynamic price dispersion. Empirical analyses show that dynamic price dispersion is significantly influenced by demand characteristics variables such as population, income and the share of business passengers, as well as by competitive pressures stemming from the presence of low-cost carriers, but not by the competition intensity. The impact of these variables intensifies as the departure date approaches. These results imply that in the presence of low-cost carriers, full-service carriers tend to adopt a more aggressive high-low pricing strategy.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
Authors
, ,