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Price dispersion and competition in European airline markets

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  • Obermeyer, Andy
  • Evangelinos, Christos
  • Püschel, Ronny

Abstract

This paper tests the effects of competition on price dispersion in European airline markets. By conducting a cross-sectional analysis of some 1200 flights between more than 130 European airport pairs, we confirm recent results for the US airline industry that show a non-monotonic relationship between competition intensity and price dispersion. We link our results to recent efficiency and productivity analyses. Our findings support the hypothesis that efficient airlines are better positioned to differentiate fares than their less efficient counterparts.

Suggested Citation

  • Obermeyer, Andy & Evangelinos, Christos & Püschel, Ronny, 2013. "Price dispersion and competition in European airline markets," Journal of Air Transport Management, Elsevier, vol. 26(C), pages 31-34.
    • Handle: RePEc:eee:jaitra:v:26:y:2013:i:c:p:31-34
    DOI: 10.1016/j.jairtraman.2012.08.014
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    References listed on IDEAS

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    Cited by:

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    7. Ko, Young Dae, 2016. "An airline's management strategies in a competitive air transport market," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 53-61.
    8. Evangelinos, Christos, 2013. "Interessengruppen und Preissetzung im Verkehr," Discussion Papers 2/2013, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
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