IDEAS home Printed from https://ideas.repec.org/a/sot/journl/y2008i39p1-13.html
   My bibliography  Save this article

Willingness to pay for airline services attributes: evidence from a stated preferences choice game

Author

Listed:
  • De Menezes, Antonio Gomes
  • Vieira, J. C.

Abstract

We analyze consumer preferences for airline service attributes between Ponta Delgada and Lisbon: the most important air corridor between the Azores and Mainland Portugal. Owing to stringent regulations, which fall under the European Union Public Service Obligations (PSOs) domain, there are no revealed preferences data suitable to study consumer preferences. Hence, we conduct a stated preferences choice game and estimate a microeconometric model a’ la McFadden. Our results are statistically significant and imply willingness to pay measures economically high for attributes such as punctuality warranties and comfort. Willingness to pay for additional daily flights is quite low. This result is important to how should the policy maker liberalize this sector.

Suggested Citation

  • De Menezes, Antonio Gomes & Vieira, J. C., 2008. "Willingness to pay for airline services attributes: evidence from a stated preferences choice game," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 39, pages 1-13.
    • Handle: RePEc:sot:journl:y:2008:i:39:p:1-13
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10077/5975
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cao, Xinyu & Mokhtarian, Patricia L., 2005. "How do individuals adapt their personal travel? A conceptual exploration of the consideration of travel-related strategies," Transport Policy, Elsevier, vol. 12(3), pages 199-206, May.
    2. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, January.
    3. Anna Merino, 2003. "Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment," Working Papers, Research Center on Health and Economics 705, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Cao, Xinyu & Mokhtarian, Patricia L., 2005. "How do individuals adapt their personal travel? Objective and subjective influences on the consideration of travel-related strategies for San Francisco Bay Area commuters," Transport Policy, Elsevier, vol. 12(4), pages 291-302, July.
    5. Williams, George & Pagliari, Romano, 2004. "A comparative analysis of the application and use of public service obligations in air transport within the EU," Transport Policy, Elsevier, vol. 11(1), pages 55-66, January.
    6. Anna Merino, 2003. "Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment," Economics Working Papers 705, Department of Economics and Business, Universitat Pompeu Fabra.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeon, Mi-Sun & Lee, Jang-Ho, 2020. "Estimation of willingness-to-pay for premium economy class by type of service," Journal of Air Transport Management, Elsevier, vol. 84(C).
    2. Saffarzadeh, Mahmoud & Mazaheri, Akram & Tari, Majid Zabihi & Seyedabrishami, Seyedehsan, 2016. "Analysis of Iranian passengers' behavior in choosing type of carrier in international air travel to East Asia," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 123-130.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. António Menezes & José Vieira, 2006. "Willingness to Pay for Airline Services Attributes: Microeconometric Evidence from a Stated Preference Discrete Choice Model," EcoMod2006 272100063, EcoMod.
    2. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.
    3. Neustadt, Ilja & Zweifel, Peter, 2010. "Is the Welfare State Sustainable? Experimental Evidence on Citizens' Preferences for Redistribution," MPRA Paper 22233, University Library of Munich, Germany.
    4. Neustadt, Ilja & Zweifel, Peter, 2011. "Income redistribution: how to divide the pie?," MPRA Paper 35427, University Library of Munich, Germany.
    5. repec:pra:mprapa:91766 is not listed on IDEAS
    6. Carolina González & Nancy Johnson & Matin Qaim, 2009. "Consumer Acceptance of Second‐Generation GM Foods: The Case of Biofortified Cassava in the North‐east of Brazil," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 604-624, September.
    7. Yingjie Ding & Tao Fan & Huan Wang & Zhao Yang, 2024. "A Comparative Study of Bazaar Cultural Spaces in Central Asia and China," Sustainability, MDPI, vol. 16(20), pages 1-22, October.
    8. Nikolina Dukic Samarzija & Andrea Arbula Blecich & Luka Samarzija, 2018. "The Paradigm Of Patient-Centered Care In The Public Health Decision-Making," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 27(2), pages 503-516, december.
    9. Ilja Neustadt, 2011. "Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence," CESifo Economic Studies, CESifo Group, vol. 57(4), pages 623-652, December.
    10. Thijs Schoot & Milena Pavlova & Elka Atanasova & Wim Groot, 2017. "Preferences of Bulgarian consumers for quality, access and price attributes of healthcare services—result of a discrete choice experiment," International Journal of Health Planning and Management, Wiley Blackwell, vol. 32(1), pages 47-71, January.
    11. Marek Drliciak & Jan Celko & Michal Cingel & Dusan Jandacka, 2020. "Traffic Volumes as a Modal Split Parameter," Sustainability, MDPI, vol. 12(24), pages 1-21, December.
    12. Fitsum Dechasa & Feyera Senbeta & Dawit Diriba Guta, 2021. "Economic value of wetlands services in the Central Rift Valley of Ethiopia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 29-53, January.
    13. Carías Vega , Dora & Alpízar, Francisco, 2011. "Choice Experiments in Enviromental Impact Assessment: The Toro 3 Hydroelectric Project and the Recreo Verde Tourist Center in Costa Rica," RFF Working Paper Series dp-11-04-efd, Resources for the Future.
    14. repec:fpr:export:1337 is not listed on IDEAS
    15. Cristina Pronello & Jean-Baptiste Gaborieau, 2018. "Engaging in Pro-Environment Travel Behaviour Research from a Psycho-Social Perspective: A Review of Behavioural Variables and Theories," Sustainability, MDPI, vol. 10(7), pages 1-22, July.
    16. Villano, Renato & Chang, Hui-Shung (Christie) & Kewa, John & Irving, Donald, 2016. "Factors Affecting Consumers’ Willingness to Pay for Good Quality Sweetpotato in Papua New Guinea," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 24, April.
    17. Hee-Jong Yang & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Environmental Costs of Photovoltaic Power Plants in South Korea: A Choice Experiment Study," Sustainability, MDPI, vol. 9(10), pages 1-13, September.
    18. Neustadt, Ilja & Zweifel, Peter, 2018. "Redistribution in Whose Favor? Preferences with Regard to Nationality and Type of Beneficiaries," MPRA Paper 119465, University Library of Munich, Germany.
    19. Kennedy Otieno, Pambo, 2013. "Analysis of Consumer Awareness and Preferences for Fortified Sugar in Kenya," Research Theses 243455, Collaborative Masters Program in Agricultural and Applied Economics.
    20. Carlton Basmajian, 2010. "“Turn on the radio, bust out a song”: the experience of driving to work," Transportation, Springer, vol. 37(1), pages 59-84, January.
    21. Sangho Choo & Patricia Mokhtarian, 2008. "How do people respond to congestion mitigation policies? A multivariate probit model of the individual consideration of three travel-related strategy bundles," Transportation, Springer, vol. 35(2), pages 145-163, March.
    22. Garima Taneja & Barun Deb Pal & Pramod K. Joshi & Pramod K. Aggarwal & N. K. Tyagi, 2014. "Farmers’ Preferences for Climate-Smart Agriculture: An Assessment in the Indo-Gangetic Plain," Working Papers id:5806, eSocialSciences.

    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:sot:journl:y:2008:i:39:p:1-13. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Romeo Danielis (email available below). General contact details of provider: https://edirc.repec.org/data/xxxxxxx.html .

    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.