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| Author: | Bitzan, J.D. Chi, J. |
| Title: | Higher airfares to small and medium sized communities - costly service or market power? |
| Journal: | Journal of Transport Economics and Policy
2006 : SEP, VOL. 40:3, p. 473-501 |
| Index terms: | aircraft industry pricing |
| Language: | eng |
| Abstract: | This study examines airfares for fligths serving small and large communities, and attempts to explain their differences by using a 10% sample of all tickets sold nationwide in the year prior to the terrorist attacks of 11 SEP 2001. The study finds airfares that are 11% higher for those serving communities of 300 00 or less in comparison to those serving communities of more than 300 000, on average. In examining reasons for fare differences, the study finds that average fares are higher for small communities due to a higher cost of serving such communities and due to market power differences. |
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