This paper rationalizes the use of discounted refundable advance purchase tickets and advance purchase restrictions in context of models with costly capacity and aggregate demand uncertainty. We show how a monopolist on such markets can improve upon pricing mechanisms, previously proposed in the...

This study provides the first empirical assessment of the impact airline delays have on urban employment. While previous works have suggested that road congestion can slow down regional development, the influence of air traffic delays on metro‐level jobs has not been examined comprehensively....

This paper offers a first model of parallel frequent flier programs partnerships, rather typical for the US domestic market. We model these partnerships as arrangements which make carriers' services more substitutable, in a setup where consumers value frequency and exhibit varying degrees of...

This paper presents a theoretical and empirical analysis of the relationship between frequency of scheduled transportation services and their substitutability with personal transportation, using distance as a proxy. We study the interaction between a monopoly fi rm providing a high-speed...

Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in...