This paper uses a unique individual transactions data set to investigate the effects of internet purchase on the prices paid for airline tickets. The analysis also investigates the effects of changes in the percentage of online transactions on both online and offline prices and on price...

Firms with linear pricing offer their customers the same price for each unit of a good or service. Anything else is nonlinear pricing. Nonlinear pricing in imperfect markets indicates a fundamental asymmetry in information between firms and consumers. Consumers are commonly expected to exhibit...