Price Dispersion in the Airline Industry: A Conceptual Framework and Empirical Analysis

  • Edward D. Gailey
  • Ashutosh Dixit
  • Thomas W. Whipple
  • Rajshekhar ‘Raj’ Javalgi
Conference paper
First Online:
Part of the Developments in Marketing Science: Proceedings of the Academy of Marketing Science book series (DMSPAMS)

Abstract

Price dispersion can influence product demand, firm profitability, and social welfare. The authors develop a framework centered on understanding the effects of competition and market structure on price dispersion. An empirical analysis evaluates the effects of competition in a multi-market context on price dispersion in the airline industry by focusing on competition and market characteristics. The results of this study show that multi-market contact between rival firms and the interaction of multi-market contact and market concentration have significant effects on price dispersion. This study provides valuable insights for developing marketing strategies and extends the stream of research on price dispersion.

Keywords

Social Welfare Empirical Analysis Full Model Local Market Valuable Insight 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Copyright information

© Academy of Marketing Science 2015

Authors and Affiliations

  • Edward D. Gailey
    • 1
  • Ashutosh Dixit
    • 2
  • Thomas W. Whipple
    • 2
  • Rajshekhar ‘Raj’ Javalgi
    • 2
  1. 1.Fairmont State UniversityWinter ParkUSA
  2. 2.Cleveland State UniversityWinter ParkUSA

Personalised recommendations