Erschienen in:Rotman School of Management Working Paper ; No. 2477719
Umfang:
1 Online-Ressource (40 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2477719
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 9, 2016 erstellt
Beschreibung:
We revisit the relationship between competition and price discrimination in the airline industry. Theoretically, we show that, if consumers differ in terms of both their underlying willingness-to-pay and their brand loyalty, competition may increase price differences between some consumers while decreasing them between others. Empirically, we find that competition has little impact on tickets at the top or the bottom of the fare distribution but a significant impact on tickets in the middle, thus increasing some fare differentials but decreasing others. Our findings highlight the importance of understanding the relevant sources of consumer heterogeneity and can reconcile earlier conflicting findings