AbstractIn this paper we estimate a pricing equation using data, at route and airline levels, for five European countries where a significant proportion of the territory is located on islands; France, Greece, Italy, Portugal and Spain. By using two complementary empirical strategies, instrumental variables and matching procedures, we find that the imposition of Public Service Obligations does not seem to be effective in reducing prices. Furthermore, we find that prices are higher on routes where only island residents enjoy subsidies, but not on routes where subsidies do not discriminate between residents and non-residents. Finally, prices seem to be higher on routes with flat rates in contrast to routes where subsidies to residents are made through fare discounts. Overall, the results of our analysis suggest the need to change policies in order to support air services to islands and to avoid distortions in the market fares offered by airlines.


    Zugriff

    Zugriff prüfen

    Verfügbarkeit in meiner Bibliothek prüfen

    Bestellung bei Subito €


    Exportieren, teilen und zitieren



    Titel :

    An empirical evaluation of the effects of European public policies on island airfares


    Beteiligte:
    Fageda, Xavier (Autor:in) / Jiménez, Juan Luis (Autor:in) / Valido, Jorge (Autor:in)


    Erscheinungsdatum :

    2017-09-25


    Format / Umfang :

    12 pages




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch




    Reputation, search cost, and airfares

    Bilotkach, V. | Online Contents | 2010


    The effect of de-hubbing on airfares

    Tan, Kerry M. / Samuel, Andrew | Elsevier | 2015


    Reputation, search cost, and airfares

    Bilotkach, Volodymyr | Elsevier | 2010



    Contestability and public concern about airfares: A case study in the Canary Islands

    Campos, Javier / Jiménez, Juan Luis / Perdiguero, Jordi | Elsevier | 2015