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- Title
Pricing Dynamics in the Australian Airline Market.
- Authors
DE ROOS, NICOLAS; MILLS, GORDON; WHELAN, STEPHEN
- Abstract
We examine price dispersion in a large dataset of Australian domestic airfares. The airlines vary the lowest available fares on successive booking days by restricting the menu of available ticket types, and by changing the prices for some of those types. Our fixed-effects estimator allows us to characterise both of those mechanisms. The greatest price variation occurs on routes involving competition between the two main airlines, Qantas and Virgin; there is greater variation on monopoly routes than on routes pitting Virgin against the Qantas subsidiary, Jetstar. The lowest fares rise rapidly in the week before travel.
- Subjects
AUSTRALIA; AIRLINE industry; PRICE variance; QANTAS Airways Ltd.; VIRGIN Atlantic Airways Ltd.
- Publication
Economic Record, 2010, Vol 86, Issue 275, p545
- ISSN
0013-0249
- Publication type
Article
- DOI
10.1111/j.1475-4932.2010.00653.x