Understanding airline price dispersion in the presence of high-speed rail

Ma, Wenliang and Wang, Qiang and Yang, Hangjun and Zhang, Guoquan and Zhang, Yahua ORCID: https://orcid.org/0000-0003-1522-3402 (2020) Understanding airline price dispersion in the presence of high-speed rail. Transport Policy, 95. pp. 93-102. ISSN 0967-070X

[img]
Preview
Text (Submitted Version)
Price Dispersion 0422.pdf

Download (570kB) | Preview

Abstract

This paper examines the price dispersion among China's “Big Three”, namely, Air China, China Eastern and China Southern in the presence of high-speed rail (HSR). It has been found that HSR is positively and significantly associated with airline price dispersion on the long-haul routes, which may suggest that the presence of HSR can facilitate airline cooperation in setting prices and outputs, thereby leading to greater price dispersion. However, on the short-haul routes where HSR is highly substitutable, the HSR competition effect dominates, and smaller price dispersion is observed. All the market structure and competition variables included in this study support the conclusion that price dispersion is greater in more concentrated and more densely travelled markets. The contribution of airline cost to price dispersion is limited.


Statistics for USQ ePrint 39079
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Management and Enterprise (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 28 Jul 2020 01:53
Last Modified: 31 Jul 2020 01:57
Uncontrolled Keywords: Price dispersion; High-speed rail; Airline; Competition; Collusion
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1507 Transportation and Freight Services > 150701 Air Transportation and Freight Services
14 Economics > 1402 Applied Economics > 140217 Transport Economics
Socio-Economic Objectives (2008): B Economic Development > 88 Transport > 8803 Aerospace Transport > 880302 Air Passenger Transport
Identification Number or DOI: https://doi.org/10.1016/j.tranpol.2020.05.015
URI: http://eprints.usq.edu.au/id/eprint/39079

Actions (login required)

View Item Archive Repository Staff Only