Airfares fluctuate due to demand shocks and intertemporal variation in willingness to pay. I estimate a model of dynamic airline pricing accounting for both sources of price adjustments using novel flight-level data. I use the model estimates to evaluate the welfare effects of dynamic airline pricing. Relative to uniform pricing, dynamic pricing benefits early-arriving, leisure consumers at the expense of late-arriving, business travelers. Although dynamic pricing ensures seat availability for business travelers, these consumers are then charged higher prices. When aggregated over markets, welfare is higher under dynamic pricing than under uniform pricing. The directionality of the welfare effect at the market level depends on whether dynamic price adjustments are mainly driven by demand shocks or by changes in the overall demand elasticity


    Zugriff

    Download


    Exportieren, teilen und zitieren



    Titel :

    The Welfare Effects of Dynamic Pricing : Evidence from Airline Markets


    Beteiligte:

    Erschienen in:

    Erscheinungsdatum :

    2021


    Format / Umfang :

    1 Online-Ressource


    Anmerkungen:

    illustrations (black and white)
    Campusweiter Zugriff (Universität Hannover) - Vervielfältigungen (z.B. Kopien, Downloads) sind nur von einzelnen Kapiteln oder Seiten und nur zum eigenen wissenschaftlichen Gebrauch erlaubt. Keine Weitergabe an Dritte. Kein systematisches Downloaden durch Robots.



    Medientyp :

    Buch


    Format :

    Elektronische Ressource


    Sprache :

    Englisch





    Internet penetration and airline pricing: Evidence from China

    Huang, Zhibin / Yong, Jianming / Ma, Wenliang et al. | Elsevier | 2022


    Airline Pricing

    Vinod, Ben | Springer Verlag | 2021


    Dynamic price dispersion in airline markets

    Mantin, Benny / Koo, Bonwoo | Elsevier | 2009


    Dynamic price dispersion in airline markets

    Mantin, Benny | Online Contents | 2009