@article{Chi:207596,
      recid = {207596},
      author = {Chi, Junwook and Koo, Won W. and Lim, Siew Hoon},
      title = {Carriers’ Price Dispersion in the U.S. Airline Industry},
      address = {2009-03},
      number = {1429-2016-118621},
      pages = {24},
      year = {2009},
      abstract = {This paper explores price dispersion in the U.S. airline  industry by highlighting individual carriers’ price  discrimination strategies. Using  heteroskedasticity-adjusted instrumental variable  technique, we found that individual carriers play crucial  roles in determining price dispersion, implying that the  carriers’ price discrimination strategies may influence  variation in airfares. Based on the estimated price  dispersion and the estimated average price, we  distinguished sources of price dispersion by categorizing  individual carriers’ pricing strategies. In 2005, for  example, monopoly-type price discrimination was likely to  result in price dispersion for Northwest, whereas  competitive-type price discrimination was likely to lead to  price dispersion for Delta. However, most of the carriers  showed different types of pricing strategies under the same  market conditions in 2000. Therefore, this paper supported  evidence that the type of the pricing strategies is not  equal across the U.S. air carriers.},
      url = {http://ageconsearch.umn.edu/record/207596},
      doi = {https://doi.org/10.22004/ag.econ.207596},
}