| Full text | |
| Author(s): |
Varella, Rafael R.
;
Frazao, Jessica
;
Oliveira, Alessandro V. M.
Total Authors: 3
|
| Document type: | Journal article |
| Source: | TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW; v. 98, p. 151-170, FEB 2017. |
| Web of Science Citations: | 6 |
| Abstract | |
This paper develops an empirical model of online airfares to inspect the impact of the entry of a low-cost carrier (LCC). We utilize a database collected from the website of an online travel agent in Brazil. We test whether incumbents reshape their airfare temporal profiles in an attempt to attract the price-sensitive passengers who constitute the target market of the newcomer. Our results suggest that LCC entry partially spoils the existing market segmentation schemes of incumbents, forcing them to revise their distribution management strategy, simplify their fare structure and migrate from a non-monotonic to a weakly monotonic price curve. (C) 2016 Elsevier Ltd. All rights reserved. (AU) | |
| FAPESP's process: | 13/14914-4 - Empirical assessment of competitive impacts of regulatory rules of airport slots redistribution |
| Grantee: | Alessandro Vinícius Marques de Oliveira |
| Support Opportunities: | Regular Research Grants |