This paper shows how an airline monopoly uses refundable and non-refundable tickets to screen consumers who are uncertain about their travel. Our theoretical model predicts that the difference between these two fares diminishes as individual demand uncertainty is resolved. Using an original data...

This dissertation analyzes pricing under uncertainty focusing on the U.S. airlineindustry. It sets to test theories of price dispersion driven by uncertainty in the demandby taking advantage of very detailed information about the dynamics of airlineprices and inventory levels as the flight date...