Prices for the same flight change substantially depending on the time of purchase. This paper uses a unique dataset with round-the-clock posted fares to document significant within-day price variation. Labeling time-variation as discriminatory is difficult because the cost of an unsold airline...

Prices for the same flight change substantially depending on the time of purchase. This paper uses a unique dataset with round-the-clock posted fares to document significant within-day price variation. Labeling time-variation as discriminatory is difficult because the cost of an unsold airline...

We use unique data sets with round-the-clock posted fares and a regression discontinuity design to identify price discrimination in advance-purchase discounts. Price discrimination increases fares by 14% between two and one week before departure, and by 7.6% between three and two weeks to...

We develop a model to derive an optimal price for a bundle of two goods when buyers are risk averse and uncertain about the valuation of each good. In theory, the optimal bundle price depends not only on the probability of a positive valuation of each good, but also on the correlation between...

In this study, we document and analyze price-offer curves (the dynamics of offered prices as the departure date approaches) for 105 specific round trip itineraries on 50 busy US routes. The data were collected from the three leading on-line travel agents' web-sites. We exploit across-route...

This study traces the evolution of offered airfares on 50 busy routes on the US domestic market. Our approach differs from that in the literature in the following ways. First, we trace the lowest offered fares for specific round-trip itineraries, acknowledging both that many trips involve return...