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Full-Text Articles in Industrial Organization
An Econometric Analysis On Pricing And Market Structure In The U.S. Airline Industry, Jiajun Liang
An Econometric Analysis On Pricing And Market Structure In The U.S. Airline Industry, Jiajun Liang
The Macalester Review
This paper examines the relationship between market power and airfares in the U.S. aviation industry. I performed Hausman-Taylor and random effects estimation techniques on quarterly data of the top one thousand most heavily traveled city pairs from 2009 to 2012. Overall, the regression results may be interpreted in such way that while higher concentration at a route level increases ticket prices, it nonetheless reduces average airfare at the airport level. For policy implications, it may suggest that higher market concentration has at least some merits to the consumers, most likely caused by the cost saving due to economic use of …
Pricing Lower Or Buying Cheaper? How Grocery Consumers Pay Less During Seasonal Demand Peaks, Colin Watson
Pricing Lower Or Buying Cheaper? How Grocery Consumers Pay Less During Seasonal Demand Peaks, Colin Watson
Undergraduate Economic Review
The average price paid for a seasonal grocery category is (surprisingly) lower during the category's seasonal demand peak. For several product categories at one supermarket chain, demand peaks are shown to be associated with 1) consumer substitution to lower-quality products, 2) product price reductions, especially on products that increase their market shares, and as a result 3) a decline in the average price paid for the product category. In one very seasonal category, price reductions are driven by intertemporal substitution associated with large weekly discounts. Findings are consistent with any of several loss leader models.