Pricing Behaviour and Non-Price Characteristics in the Airline Industry (Advances in Airline Economics)

001View_ Pricing Behavior and Non-Price Characteristics in the Airline Industry, as a PDF.Pricing_Behavior......Page 1
Advances in Airline Economics......Page 2
003View_ Advances in Airline Economics, as a PDF.Advances_in......Page 3
List of contributors......Page 4
bm_......Page 6
Outline placeholder......Page 0
Pricing behavior and non-price characteristics of the airline industry: introduction and overview......Page 7
Competition, online ticket agencies, carrier financial conditions, and airline pricing......Page 9
Non-pricing characteristics and externalities......Page 12
Concluding remarks......Page 14
References......Page 15
Introduction......Page 16
Literature review......Page 18
Data......Page 21
Preliminary Analysis......Page 27
Empirical estimation......Page 30
The Empirical Model......Page 31
Base Estimations......Page 34
Alternative Thresholds to Identify Market Presence......Page 39
Alternative Data Source to Identify Market Presence......Page 41
Distinguishing Effects by Carrier......Page 42
Notes......Page 48
References......Page 50
Introduction......Page 59
Previous studies of airline pricing......Page 61
Pricing behavior in Canadian and transborder routes......Page 64
Price Variables......Page 69
Regressors......Page 71
Econometric results......Page 73
Implications and conclusions......Page 78
Notes......Page 81
References......Page 82
Constructing the costs variable......Page 84
Introduction......Page 87
Data collection......Page 89
General......Page 90
Trends in Price Quotes......Page 91
Price Drops......Page 95
Differences across Agents......Page 97
Cost-Benefit Analysis of Searching for Additional Fare Quotes......Page 100
The Dynamics of Price Changes......Page 102
Conclusions......Page 104
References......Page 105
List of Markets......Page 107
Introduction......Page 110
Ticket distribution market......Page 112
Contractual Relationships Between Airlines and Agents......Page 115
Airlines’ and Agents’ Incentives......Page 116
Collection Process......Page 118
Descriptive Statistics......Page 119
Data analysis: the role of two market structures......Page 123
Data analysis: airline-agent relationships......Page 132
Discussion and conclusions......Page 136
Notes......Page 138
References......Page 139
List of airport-pair markets......Page 141
Introduction......Page 142
Literature review and hypothesis development......Page 143
Data, variables, and methodology......Page 147
Variables......Page 148
Empirical Methodology......Page 149
Empirical analysis and results......Page 152
Concluding remarks......Page 155
Notes......Page 156
References......Page 157
Introduction......Page 159
Background on jet fuel prices and baggage fees......Page 161
Data and empirical methodology......Page 165
Estimates of Changes in Market and Product Differentiation Variables on Ticket Price Changes......Page 168
Estimates of Changes in Jet Fuel Prices on Ticket Price Changes......Page 170
Estimates of Changes in Baggage Fees on Ticket Price Changes......Page 171
Conclusion......Page 172
References......Page 173
Introduction......Page 175
Fragmentation in aviation......Page 176
The Legal Prerequisites - Deregulation and Liberalization......Page 177
Technological Drivers......Page 178
Economic Considerations......Page 179
Data Base (Limitations) and Methodology......Page 181
North AmericaharrEurope......Page 182
North AmericaharrAsia......Page 183
Notes......Page 185
References......Page 186
List of US-hubs in Alphabetical Order......Page 188
North AmericaharrEurope......Page 190
North AmericaharrAsia......Page 193
Introduction......Page 195
Related literature......Page 198
Passenger Side......Page 200
Airline Side......Page 202
Airport Pricing......Page 203
Data......Page 204
Empirical model......Page 207
Estimation results......Page 209
Conclusion......Page 210
References......Page 211
: A nested choice structure......Page 214
Introduction......Page 215
Size of Airports......Page 219
Growth of Firms and Airports......Page 221
Airports and Airline Pricing......Page 222
Data sources......Page 229
Airport sizes......Page 231
Determinant of Market Size......Page 233
Data......Page 235
Airport growth......Page 247
Summary and conclusions......Page 251
Notes......Page 252
References......Page 253
Introduction......Page 256
Data......Page 258
Ordered probit model......Page 260
Ordered probit results......Page 261
Ordered probit locally weighted regressions: locally weighted maximum likelihood......Page 263
Ordered probit locally weighted regressions: results......Page 264
Where does the noise fallquest A graphical view......Page 266
Conclusion......Page 273
Notes......Page 274
References......Page 275
Introduction......Page 277
Airline Passengers......Page 278
Airline Costs......Page 280
Consumer Choice......Page 282
Airlines’ choice of safety and price......Page 284
Conditions for a differential safety level to exist......Page 287
Consumers Know the Safety Level(s) Offered by Airlines......Page 288
Airlines Know Their Production Functions......Page 293
Regulations Do Not Truncate the Range of Safety Offerings......Page 294
Avaricious Cheating......Page 295
Involuntary Cheating......Page 296
Where safety differentiation does occur......Page 297
Concluding remarks......Page 299
Notes......Page 300
References......Page 301