{"title":"The effect of vertical product differentiation on fare and market share: Evidence from Delta Air Lines’ middle seat policy","authors":"Max J. Hyman , Ian Savage","doi":"10.1016/j.ecotra.2022.100274","DOIUrl":null,"url":null,"abstract":"<div><p>Delta Air Lines engaged in vertical product differentiation during the COVID-19 pandemic. To ensure that passengers did not sit next to a stranger, Delta did not sell the middle seat on its flights that had them. Its principal rivals, American Airlines and United Airlines, sold all seats. Analysis of the non-stop routes on which Delta faced head-to-head competition with American or United reveals that Delta was able to charge a 10% fare premium and increase its relative market share by 4.7 percentage points from its middle seat policy.</p></div>","PeriodicalId":45761,"journal":{"name":"Economics of Transportation","volume":"31 ","pages":"Article 100274"},"PeriodicalIF":2.2000,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economics of Transportation","FirstCategoryId":"5","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2212012222000259","RegionNum":3,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 2
Abstract
Delta Air Lines engaged in vertical product differentiation during the COVID-19 pandemic. To ensure that passengers did not sit next to a stranger, Delta did not sell the middle seat on its flights that had them. Its principal rivals, American Airlines and United Airlines, sold all seats. Analysis of the non-stop routes on which Delta faced head-to-head competition with American or United reveals that Delta was able to charge a 10% fare premium and increase its relative market share by 4.7 percentage points from its middle seat policy.
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