Zhang, Yahua (2011) The Shanghai–Beijing 'Air Express' service model and its impact on the pricing behaviour of airlines. Asia Pacific Journal of Tourism Research, 16 (4). pp. 433-443. ISSN 1094-1665
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Identification Number or DOI: doi: 10.1080/10941665.2011.588876
Using departure day airfare data, this paper examines the pricing pattern on the Shanghai–Beijing route and reveals anti-competitive pricing behaviour following the introduction of the 'Air Express' service. This new service adds limited value to passengers because of the airport facility constraints. Jointly providing the 'express' service has provided a channel through which the three dominant players can communicate effectively to achieve more stable prices at a higher level. Interestingly, lower prices charged by the fringe airlines on this route were accommodated by the big ones. Meanwhile, the three dominant airlines did not exhibit any obvious deviation in pricing from each other.
|Item Type:||Article (Commonwealth Reporting Category C)|
|Additional Information:||Accepted version embargoed until 1 March 2013(18 months), in accordance with the copyright policy of the publisher.|
|Uncontrolled Keywords:||airline pricing; collusion; China|
|Fields of Research (FOR2008):||15 Commerce, Management, Tourism and Services > 1505 Marketing > 150507 Pricing (incl. Consumer Value Estimation)|
22 Philosophy and Religious Studies > 2201 Applied Ethics > 220102 Business Ethics
14 Economics > 1402 Applied Economics > 140217 Transport Economics
|Socio-Economic Objective (SEO2008):||B Ecomonic Development > 91 Economic Framework > 9102 Microeconomics > 910203 Industrial Organisations|
|Deposited On:||21 Nov 2011 06:19|
|Last Modified:||21 Jun 2012 10:34|
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