Pricing Behaviour and Non-Price Characteristics in the Airline Industry (Advances in Airline Economics, 3)

"Focuses on topics related to the economics of airline institutions such as airports, air traffic control, labor, operations and marketing. This book provides a collection of articles covering developments in the airline industry."--Provided by publisher. Contents: Pricing behavior and non-price characteristics of the airline industry : introduction and overview -- Examining the effect of low-cost carriers on nonlinear pricing strategies of legacy airlines -- The new pricing in North American air travel markets : implications for competition and antitrust -- A guide to booking airline tickets online -- Distribution of airline tickets : a tale of two market structures -- On airline pricing behavior during financial turnarounds -- Determinants of successful code-sharing : a case study of Continental and American West airlines alliances - a discrete longitudinal analysis -- Baggage fees and changes in airline ticket prices -- Fragmentation of North Atlantic and Transpacific air transport markets - wither the hubs? -- Are airports two-sided platforms? : a methodological approach -- The size and growth of airports -- Where does airport noise fall? Evidence from Atlanta -- Competition on the basis of safety? Other Contributors: Peoples, James 001View_ Pricing Behavior and Non-Price Characteristics in the Airline Industry, as a PDF.Pricing_Behavior......Page 1 Advances in Airline Economics......Page 2 003View_ Advances in Airline Economics, as a PDF.Advances_in......Page 3 List of contributors......Page 4 bm_......Page 6 Outline placeholder......Page 0 Pricing behavior and non-price characteristics of the airline industry: introduction and overview......Page 7 Competition, online ticket agencies, carrier financial conditions, and airline pricing......Page 9 Non-pricing characteristics and externalities......Page 12 Concluding remarks......Page 14 References......Page 15 Introduction......Page 16 Literature review......Page 18 Data......Page 21 Preliminary Analysis......Page 27 Empirical estimation......Page 30 The Empirical Model......Page 31 Base Estimations......Page 34 Alternative Thresholds to Identify Market Presence......Page 39 Alternative Data Source to Identify Market Presence......Page 41 Distinguishing Effects by Carrier......Page 42 Notes......Page 48 References......Page 50 Introduction......Page 59 Previous studies of airline pricing......Page 61 Pricing behavior in Canadian and transborder routes......Page 64 Price Variables......Page 69 Regressors......Page 71 Econometric results......Page 73 Implications and conclusions......Page 78 Notes......Page 81 References......Page 82 Constructing the costs variable......Page 84 Introduction......Page 87 Data collection......Page 89 General......Page 90 Trends in Price Quotes......Page 91 Price Drops......Page 95 Differences across Agents......Page 97 Cost-Benefit Analysis of Searching for Additional Fare Quotes......Page 100 The Dynamics of Price Changes......Page 102 Conclusions......Page 104 References......Page 105 List of Markets......Page 107 Introduction......Page 110 Ticket distribution market......Page 112 Contractual Relationships Between Airlines and Agents......Page 115 Airlines’ and Agents’ Incentives......Page 116 Collection Process......Page 118 Descriptive Statistics......Page 119 Data analysis: the role of two market structures......Page 123 Data analysis: airline-agent relationships......Page 132 Discussion and conclusions......Page 136 Notes......Page 138 References......Page 139 List of airport-pair markets......Page 141 Introduction......Page 142 Literature review and hypothesis development......Page 143 Data, variables, and methodology......Page 147 Variables......Page 148 Empirical Methodology......Page 149 Empirical analysis and results......Page 152 Concluding remarks......Page 155 Notes......Page 156 References......Page 157 Introduction......Page 159 Background on jet fuel prices and baggage fees......Page 161 Data and empirical methodology......Page 165 Estimates of Changes in Market and Product Differentiation Variables on Ticket Price Changes......Page 168 Estimates of Changes in Jet Fuel Prices on Ticket Price Changes......Page 170 Estimates of Changes in Baggage Fees on Ticket Price Changes......Page 171 Conclusion......Page 172 References......Page 173 Introduction......Page 175 Fragmentation in aviation......Page 176 The Legal Prerequisites - Deregulation and Liberalization......Page 177 Technological Drivers......Page 178 Economic Considerations......Page 179 Data Base (Limitations) and Methodology......Page 181 North AmericaharrEurope......Page 182 North AmericaharrAsia......Page 183 Notes......Page 185 References......Page 186 List of US-hubs in Alphabetical Order......Page 188 North AmericaharrEurope......Page 190 North AmericaharrAsia......Page 193 Introduction......Page 195 Related literature......Page 198 Passenger Side......Page 200 Airline Side......Page 202 Airport Pricing......Page 203 Data......Page 204 Empirical model......Page 207 Estimation results......Page 209 Conclusion......Page 210 References......Page 211 : A nested choice structure......Page 214 Introduction......Page 215 Size of Airports......Page 219 Growth of Firms and Airports......Page 221 Airports and Airline Pricing......Page 222 Data sources......Page 229 Airport sizes......Page 231 Determinant of Market Size......Page 233 Data......Page 235 Airport growth......Page 247 Summary and conclusions......Page 251 Notes......Page 252 References......Page 253 Introduction......Page 256 Data......Page 258 Ordered probit model......Page 260 Ordered probit results......Page 261 Ordered probit locally weighted regressions: locally weighted maximum likelihood......Page 263 Ordered probit locally weighted regressions: results......Page 264 Where does the noise fallquest A graphical view......Page 266 Conclusion......Page 273 Notes......Page 274 References......Page 275 Introduction......Page 277 Airline Passengers......Page 278 Airline Costs......Page 280 Consumer Choice......Page 282 Airlines’ choice of safety and price......Page 284 Conditions for a differential safety level to exist......Page 287 Consumers Know the Safety Level(s) Offered by Airlines......Page 288 Airlines Know Their Production Functions......Page 293 Regulations Do Not Truncate the Range of Safety Offerings......Page 294 Avaricious Cheating......Page 295 Involuntary Cheating......Page 296 Where safety differentiation does occur......Page 297 Concluding remarks......Page 299 Notes......Page 300 References......Page 301 Stepped-up competition in the airline industry over the past 40 years profoundly changed how carriers set fares. Chapters in this volume contribute to our understanding of fare determination in this industry by examining carrier pricing behavior, such as non-linear pricing, pricing decisions associated with strategic alliances, competition from low cost carriers, and the challenges faced by carriers experiencing financial distress. These contributions present nuanced analyses of fare determination that include new ways of examining whether the prices charged by carriers are consumer welfare-enhancing. Examination of airline carrier pricing only tells part of the story of firm behavior, as analysis of carriers' ability to provide quality services is also significant in understanding the economics of this industry. This volume includes chapters examining non-price characteristics of business operations, such as frequency of service, passenger safety, availability of aircraft types for different transportation services, and the geographic distribution of air transportation-related noise by aircraft departures and arrivals at airports. This is the first volume in a new series of books on the economics of the airline industry. The series will be a collection of original, cutting-edge research papers from an international panel of distinguished contributors. Volume 1 focuses on topics related to competition policy and antitrust, such as the economic impact of airline alliances (both international and domestic), predation, and incumbent responses to low cost entry