IS THE EFFECT OF COMPETITION ON PRICE DISPERSION NONMONOTONIC? EVIDENCE FROM THE US AIRLINE INDUSTRY

• 成果类型: Article
• 署名作者: Dai, Mian; Liu, Qihong; Serfes, Konstantinos
• 署名单位: Drexel University; University of Oklahoma System; University of Oklahoma - Norman
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00362
• 发表日期: 2014-03
• 页码: 161-170
• 关键词: discrimination; MARKET

摘要

We investigate the effect of competition on price dispersion in the airline industry. Using panel data from 1993 to 2008, we find a nonmonotonic effect of competition on price dispersion. An increase in competition is associated with greater price dispersion in concentrated markets but with less price dispersion in competitive markets-an inverse-U relationship. Our empirical findings are consistent with an oligopolistic second-degree price discrimination model and encompass contradictory findings in the literature.