Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1024012 | Transportation Research Part E: Logistics and Transportation Review | 2010 | 11 Pages |
Abstract
This study investigates to what extent cross-product (belly cargo) output affects (passenger ticket) prices in the US domestic airline industry. The empirical analysis indicates that greater cargo volumes generally result in lower air fares, presumably as a result of the airlines’ realization of economies of scope. This magnitude of this price effect, however, depends on certain firm and route market characteristics. The findings of this study add to extant research on economies of scope, multi-product yield management and airline pricing and provide important insights for policy makers and airline managers alike.
Related Topics
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Authors
Christian Hofer, Cuneyt Eroglu,