Price Dispersion In The Airline Industry: A Conceptual Framework And Empirical Analysis
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Price dispersion can influence product demand, firm profitability, and social welfare. The authors develop a framework centered on understanding the effects of market structure and competition on price dispersion. An empirical analysis evaluates the effects of competition in a multi-market context on price dispersion in the airline industry by focusing on market and competition characteristics. The results of this study show that multi-market contact between rival firms and the interaction of multi-market contact and market concentration have significant effects on price dispersion. This study provides valuable insights for developing marketing strategies and extends the stream of research on price dispersion.
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Gailey, Edward D., "Price Dispersion In The Airline Industry: A Conceptual Framework And Empirical Analysis" (2011). Association of Marketing Theory and Practice Proceedings 2011. 41.