Association of Marketing Theory and Practice Proceedings 2011


Price Dispersion In The Airline Industry: A Conceptual Framework And Empirical Analysis

Document Type

Conference Proceeding

Conference Track

Panels and Special Sessions

Publication Date



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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