Breaking Down Break Points: An Analysis of the Effects of Competition and Carrier Type on Ticket Prices.
This research focuses on the effects of competition and carrier type on the point of transition, separating ticket prices in two main periods; one of relatively stable- and predominantly small increases in prices and one where ticket prices start to sharply increase. This research will be applied to the U.S. airline industry, where prices for identical tickets are highly changeable over time. In this research two hypotheses are tested, estimating the effect of competition and carrier type on the point of transition between the two main periods in ticket pricing. Panel data is collected, following prices of tickets for a total of 2,339 U.S. domestic flights on the 100 busiest U.S. domestic routes. A pooled Ordinary Least Squares regression is used to estimate both effects. Effects are found for competition, finding support for advance-purchase discounts theory as the point of transition between the periods occurs earlier under increasing competition. No effects are determined for type of carrier.
|Thesis Advisor||Y. Kerkemezos|
R.J.C. de Koning. (2019, November 8). Breaking Down Break Points: An Analysis of the Effects of Competition and Carrier Type on Ticket Prices.. Economics. Retrieved from http://hdl.handle.net/2105/49517