Journal article
IS THE EFFECT OF COMPETITION ON PRICE DISPERSION NONMONOTONIC? EVIDENCE FROM THE US AIRLINE INDUSTRY
The review of economics and statistics, v 96(1)
01 Mar 2014
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We investigate the effect of competition on price dispersion in the airline industry. Using panel data from 1993 to 2008, we find a nonmonotonic effect of competition on price dispersion. An increase in competition is associated with greater price dispersion in concentrated markets but with less price dispersion in competitive markets-an inverse-U relationship. Our empirical findings are consistent with an oligopolistic second-degree price discrimination model and encompass contradictory findings in the literature.
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Details
- Title
- IS THE EFFECT OF COMPETITION ON PRICE DISPERSION NONMONOTONIC? EVIDENCE FROM THE US AIRLINE INDUSTRY
- Creators
- Mian Dai - Drexel UniversityQihong Liu - University of OklahomaKonstantinos Serfes - Drexel University
- Publication Details
- The review of economics and statistics, v 96(1)
- Publisher
- Mit Press
- Number of pages
- 10
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000332123700011
- Scopus ID
- 2-s2.0-84896381439
- Other Identifier
- 991019168775904721
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Economics
- Social Sciences, Mathematical Methods