IDEAS home Printed from https://ideas.repec.org/a/eee/ecotra/v41y2025ics2212012225000012.html
   My bibliography  Save this article

Demand-shock characteristics and pricing behavior: A natural experiment from UEFA Euro 2016

Author

Listed:
  • Piga, Claudio A.
  • Gaggero, Alberto A.
  • Alderighi, Marco

Abstract

We consider a multi-period, limited capacity, unsegmented airline pricing model whose solution returns a sequence of increasing prices based on the order of sale. We show that a positive demand shock corresponding to an increase in the arrival rate reduces within-period price dispersion and has a minor impact on the sequence’s maximum prices. Alternatively, upward shifts in customers’ willingness-to-pay lead to higher maximum prices but do not affect within-period price dispersion. Demand shocks are identified in our sample by the draw that created the stage groups for the UEFA Euro 2016 soccer tournament. After the draw, some flights became suitable to transport foreign supporters to the location where matches were scheduled. Consistent with the theory, a different price behavior is observed between UK and continental European routes.

Suggested Citation

  • Piga, Claudio A. & Gaggero, Alberto A. & Alderighi, Marco, 2025. "Demand-shock characteristics and pricing behavior: A natural experiment from UEFA Euro 2016," Economics of Transportation, Elsevier, vol. 41(C).
  • Handle: RePEc:eee:ecotra:v:41:y:2025:i:c:s2212012225000012
    DOI: 10.1016/j.ecotra.2025.100393
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212012225000012
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecotra.2025.100393?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Airline; Demand shock; Dynamic pricing; Soccer tournament; UEFA;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecotra:v:41:y:2025:i:c:s2212012225000012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecotra .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.