Author: Severin Borenstein

Publisher: Forgotten Books

Published: 2015-06-25

Total Pages: 45

ISBN-13: 9781330369005

Excerpt from Competition and Price Dispersion, in the U. S. Airline Industry Abstract: We study dispersion in the prices that an airline charges to different customers on the same route. Such variation in airline fares is substantial: on average the expected absolute difference in fares between two of an airline's passengers on a route is thirty-six percent of the airline's average ticket price on the route. The pattern of price disperison that we find does not seem to be explained solely by cost differences. Dispersion is higher on more competitive routes, possibly reflecting a pattern of discrimination against customers who are less willing to switch to alternative flights or airlines. We argue that the data support an explanation based on theories of price discrimination in monopolistically competitive markets. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.