Entrepots are hubs that facilitate trade between multiple origins and destinations. We study these entrepots, the network they form, and their impact on international trade. We document that the trade network is a hub-and-spoke system, where 80% of trade is shipped indirectly―nearly all via entrepots. We estimate indirect-shipping consistent trade costs using a model where shipments can be sent indirectly through an endogenous transport network and develop a geography-based instrument to estimate economies of scale in shipping. Counterfactual infrastructure improvements at entrepots have on average ten times the global welfare impact of improvements at non-entrepots.
{"title":"Entrepôt: Hubs, Scale, and Trade Costs","authors":"S. Ganapati, Woan Foong Wong, O. Ziv","doi":"10.3386/W29015","DOIUrl":"https://doi.org/10.3386/W29015","url":null,"abstract":"Entrepots are hubs that facilitate trade between multiple origins and destinations. We study these entrepots, the network they form, and their impact on international trade. We document that the trade network is a hub-and-spoke system, where 80% of trade is shipped indirectly―nearly all via entrepots. We estimate indirect-shipping consistent trade costs using a model where shipments can be sent indirectly through an endogenous transport network and develop a geography-based instrument to estimate economies of scale in shipping. Counterfactual infrastructure improvements at entrepots have on average ten times the global welfare impact of improvements at non-entrepots.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121822129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We estimate the marginal costs of road renewals as part of a social marginal cost scheme for road user charging. Within an analytical approach that mirrors the relationship between road deterioration, traffic load and road renewal, we use an accelerated failure time model for road pavement with the purpose to derive the effect from traffic increase on the length of road renewal cycles. Based on a comprehensive dataset for German motorways we fit a Weibull duration model with covariates such as traffic load from heavy vehicles as well as various control variables and derive the road deterioration elasticity with respect to heavy traffic. Similar to available studies for Sweden we find a deterioration elasticity below one, implying that Newbery’s (1985) fundamental theorem does not hold for the German motorway network. The shape parameter of the Weibull function indicates that there is an ageing or weathering effect, and higher traffic loads are not the sole factor impacting on shorter pavement lifetimes. Our estimations yield a marginal renewal cost, which makes up approximately 40% of the average renewal cost. It implies that road user charges based on marginal costs will not yield a sufficient revenue to cover total costs.
{"title":"A Duration Approach for Estimating the Marginal Renewal Cost at German Motorways","authors":"Neil Murray, H. Link","doi":"10.2139/ssrn.3706006","DOIUrl":"https://doi.org/10.2139/ssrn.3706006","url":null,"abstract":"We estimate the marginal costs of road renewals as part of a social marginal cost scheme for road user charging. Within an analytical approach that mirrors the relationship between road deterioration, traffic load and road renewal, we use an accelerated failure time model for road pavement with the purpose to derive the effect from traffic increase on the length of road renewal cycles. Based on a comprehensive dataset for German motorways we fit a Weibull duration model with covariates such as traffic load from heavy vehicles as well as various control variables and derive the road deterioration elasticity with respect to heavy traffic. Similar to available studies for Sweden we find a deterioration elasticity below one, implying that Newbery’s (1985) fundamental theorem does not hold for the German motorway network. The shape parameter of the Weibull function indicates that there is an ageing or weathering effect, and higher traffic loads are not the sole factor impacting on shorter pavement lifetimes. Our estimations yield a marginal renewal cost, which makes up approximately 40% of the average renewal cost. It implies that road user charges based on marginal costs will not yield a sufficient revenue to cover total costs.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121656576","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Residents are often offered on-street parking at a fraction of the market price which may cause excess car ownership. However, residential parking costs are difficult to observe, so we propose an approach to estimate implicit residential parking costs and then examine the effect of these costs on household car ownership. We apply our approach to the four largest metropolitan areas of the Netherlands. Our results indicate that for city centres, annual residential parking costs are around €1000, or roughly 17 percent of car ownership costs, and are more than double the costs in the periphery. Our empirical estimates indicate that the disparity in parking costs explains around 30% of the difference in average car ownership rates between these areas and corresponds to a price elasticity of car demand of about −0.7. We apply these estimates to gauge the potential implications of automated vehicles which suggests that, if residents no longer require parking nearby their homes, car demand in city centres may increase by 8–14 percent.
{"title":"Residential Parking Costs and Car Ownership: Implications for Parking Policy and Automated Vehicles","authors":"F. Ostermeijer, H. Koster, Jos N. van Ommeren","doi":"10.2139/ssrn.3353093","DOIUrl":"https://doi.org/10.2139/ssrn.3353093","url":null,"abstract":"Residents are often offered on-street parking at a fraction of the market price which may cause excess car ownership. However, residential parking costs are difficult to observe, so we propose an approach to estimate implicit residential parking costs and then examine the effect of these costs on household car ownership. We apply our approach to the four largest metropolitan areas of the Netherlands. Our results indicate that for city centres, annual residential parking costs are around €1000, or roughly 17 percent of car ownership costs, and are more than double the costs in the periphery. Our empirical estimates indicate that the disparity in parking costs explains around 30% of the difference in average car ownership rates between these areas and corresponds to a price elasticity of car demand of about −0.7. We apply these estimates to gauge the potential implications of automated vehicles which suggests that, if residents no longer require parking nearby their homes, car demand in city centres may increase by 8–14 percent.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122334191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Internal control is a critical element in the business cycle, especially when it comes to sales and cash receipt cycle which is core of business in the company. The research focuses on service industry in Indonesia i.e., Gojek Indonesia, PT. Gojek Indonesia, PT is an online private transportation company which has eleven variety of unit businesses. However, the study focuses on two-unit business e.g., Go Ride and Go Send. The purpose of the study is to identify the internal control implemented towards sales and cash receipt and how it affected to the performance of revenue cycle department. The study finds that there is internal control implementation in the revenue cycle in the company. The study uses COSO framework as a measurement tools to control revenue cycle. In addition, the company implements internal control based on COSO framework towards revenue cycle, and effect to the performance of revenue cycle department. Although, the company implement the internal control, some procedures regarding standard operation procedure on sales and cash receipt cycle need to be improved, in addition, the documentations and administration which relate to the revenue cycle.
内部控制是商业周期的关键因素，特别是当涉及到销售和现金收入周期时，这是公司业务的核心。研究重点是印尼的服务行业，即Gojek Indonesia, PT. Gojek Indonesia, PT是一家在线私人运输公司，拥有11个不同的单位业务。然而，该研究侧重于两个单元的业务，例如Go Ride和Go Send。本研究的目的是确定对销售和现金收入实施的内部控制，以及它如何影响收入周期部门的绩效。研究发现，该公司在收入周期中实施了内部控制。本研究使用COSO框架作为衡量工具来控制收益周期。此外，公司对收入周期实施基于COSO框架的内部控制，并对收入周期部门的绩效产生影响。虽然公司实行了内部控制，但是销售和现金回款周期的标准操作程序的一些程序需要改进，另外，与收入周期相关的文件和管理也需要改进。
{"title":"Internal Control Implementation in The Revenue Cycle – A Case Study an Online Transportation Company","authors":"Amalia Khaeriah Abidin, Alfi Andri","doi":"10.2139/ssrn.3299218","DOIUrl":"https://doi.org/10.2139/ssrn.3299218","url":null,"abstract":"Internal control is a critical element in the business cycle, especially when it comes to sales and cash receipt cycle which is core of business in the company. The research focuses on service industry in Indonesia i.e., Gojek Indonesia, PT. Gojek Indonesia, PT is an online private transportation company which has eleven variety of unit businesses. However, the study focuses on two-unit business e.g., Go Ride and Go Send. The purpose of the study is to identify the internal control implemented towards sales and cash receipt and how it affected to the performance of revenue cycle department. The study finds that there is internal control implementation in the revenue cycle in the company. The study uses COSO framework as a measurement tools to control revenue cycle. In addition, the company implements internal control based on COSO framework towards revenue cycle, and effect to the performance of revenue cycle department. Although, the company implement the internal control, some procedures regarding standard operation procedure on sales and cash receipt cycle need to be improved, in addition, the documentations and administration which relate to the revenue cycle.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115117802","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates how the interactions between product differentiation, transport costs, and urban costs determine the spatial inequality in a general‐equilibrium model. We shed light on the interrelation between different definitions of home market effect (HME) in literature. While the wages in the large region are always higher, the HME in industrial distribution occurs in a limited range of parameters, implying that the HME in factor price is more pervasive. Moreover, we show that the reverse HME is the more common outcome. It indicates that neglecting urban costs in theoretical methodologies tends to overestimate the existence of HME. We also disclose how a change in urban costs or transport costs affects regional inequalities and welfare.
{"title":"Spatial Inequality and Urban Costs: Revisiting the Home Market Effect","authors":"Yiming Zhou","doi":"10.1111/jors.12414","DOIUrl":"https://doi.org/10.1111/jors.12414","url":null,"abstract":"This paper investigates how the interactions between product differentiation, transport costs, and urban costs determine the spatial inequality in a general‐equilibrium model. We shed light on the interrelation between different definitions of home market effect (HME) in literature. While the wages in the large region are always higher, the HME in industrial distribution occurs in a limited range of parameters, implying that the HME in factor price is more pervasive. Moreover, we show that the reverse HME is the more common outcome. It indicates that neglecting urban costs in theoretical methodologies tends to overestimate the existence of HME. We also disclose how a change in urban costs or transport costs affects regional inequalities and welfare.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128535728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A ride-sharing platform (RSP), such as Uber or Lyft, can sometimes offer passengers an option to share (pool) the ride with fellow passengers. On the one hand, a passenger who pools benefits from paying a lower fare and the RSP benefits from increasing occupancy per car, thereby serving more passengers. On the other hand, a passenger who pools takes more time, on average, to reach her destination and may have to share the ride with a stranger, and the RSP gets a lower profit margin per passenger than from solo rides. We develop a queueing model to find the RSP's optimal revenue at equilibrium when passengers are strategic, and drivers are independent agents, and design the RSP's revenue-maximizing price-service menu. We find that offering both solo and pooled rides is optimal when the distribution of passenger-type is not skewed, and congestion is not high. Counter intuitively, when congestion is high, the RSP benefits from offering only one ride choice, and simulation-based results extend these findings when more than one route exists. Revenue per driver can be non-monotonic with respect to the number of cars, even though total revenue is monotonic. Numerical analysis provides important insights when the number of drivers is endogenous. For instance, equilibrium revenue per driver can decrease when the passenger arrival rate increases. We find that when the driver supply side thickens, revenue per driver decreases. The compensation drivers receive (as a fraction of total revenue generated) increases with their reservation price and decreases with the arrival rate of passengers. When demand is low, a higher wage-payout fraction can increase RSP's equilibrium revenue.
{"title":"Ride Solo or Pool: Designing Price-Service Menus for a Ride-Sharing Platform","authors":"Jagan Jacob, Ricky Roet-Green","doi":"10.2139/ssrn.3008136","DOIUrl":"https://doi.org/10.2139/ssrn.3008136","url":null,"abstract":"A ride-sharing platform (RSP), such as Uber or Lyft, can sometimes offer passengers an option to share (pool) the ride with fellow passengers. On the one hand, a passenger who pools benefits from paying a lower fare and the RSP benefits from increasing occupancy per car, thereby serving more passengers. On the other hand, a passenger who pools takes more time, on average, to reach her destination and may have to share the ride with a stranger, and the RSP gets a lower profit margin per passenger than from solo rides. We develop a queueing model to find the RSP's optimal revenue at equilibrium when passengers are strategic, and drivers are independent agents, and design the RSP's revenue-maximizing price-service menu. We find that offering both solo and pooled rides is optimal when the distribution of passenger-type is not skewed, and congestion is not high. Counter intuitively, when congestion is high, the RSP benefits from offering only one ride choice, and simulation-based results extend these findings when more than one route exists. Revenue per driver can be non-monotonic with respect to the number of cars, even though total revenue is monotonic. Numerical analysis provides important insights when the number of drivers is endogenous. For instance, equilibrium revenue per driver can decrease when the passenger arrival rate increases. We find that when the driver supply side thickens, revenue per driver decreases. The compensation drivers receive (as a fraction of total revenue generated) increases with their reservation price and decreases with the arrival rate of passengers. When demand is low, a higher wage-payout fraction can increase RSP's equilibrium revenue.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"55 3","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120835327","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-11-13DOI: 10.14514/BYK.m.21478082.2017.5/2.73-93
Mustafa Emre Civelek, Nagehan Uca
The purpose of this paper is to propose a scale development method to measure the performance of foreign trade companies in paperless trade operations. First, a qualitative interview method was used to determine the dimensions of the scale. As a result of this study, it was found that paperless trade performance has primary and secondary dimensions. This two level dimensionality lead to multitrait multimethod model (MTMM) in order to determine the construct validity. This paper consists of scale proposal to measure paperless trade performance under the primary dimension (payment, customs, insurance, transport, archiving) from the secondary dimensions perspective (speed, errors, costs, security, predictability, tracking & tracing, reporting). Findings show that a complex nested model is needed to verify the validity of the scale. The theoretical contribution of this research is the development of a method for a scale in paperless trade. The managerial contribution of this research is to provide an instrument for assessing the paperless trade performance of foreign trade companies.
{"title":"Development of Paperless Foreign Trade Performance Measurement Scale the Multitrait-Multimethod Model Proposal","authors":"Mustafa Emre Civelek, Nagehan Uca","doi":"10.14514/BYK.m.21478082.2017.5/2.73-93","DOIUrl":"https://doi.org/10.14514/BYK.m.21478082.2017.5/2.73-93","url":null,"abstract":"The purpose of this paper is to propose a scale development method to measure the performance of foreign trade companies in paperless trade operations. First, a qualitative interview method was used to determine the dimensions of the scale. As a result of this study, it was found that paperless trade performance has primary and secondary dimensions. This two level dimensionality lead to multitrait multimethod model (MTMM) in order to determine the construct validity. This paper consists of scale proposal to measure paperless trade performance under the primary dimension (payment, customs, insurance, transport, archiving) from the secondary dimensions perspective (speed, errors, costs, security, predictability, tracking & tracing, reporting). Findings show that a complex nested model is needed to verify the validity of the scale. The theoretical contribution of this research is the development of a method for a scale in paperless trade. The managerial contribution of this research is to provide an instrument for assessing the paperless trade performance of foreign trade companies.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128824312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this study we analyze the determinants of airline price dispersion. We particularly concentrate on the conduct and marginal cost efficiency. The effect of conduct on price dispersion seems to depend on the characteristics of the market. For the big city routes, we observe positive effect; and for the leisure routes we find negative effect. Also, we find that margial cost efficiency has a negative effect on price dispersion.
{"title":"Price Dispersion, Competition, and Efficiency: Evidence from Chicago Based Routes","authors":"Levent Kutlu, Ran Wang","doi":"10.2139/ssrn.2612265","DOIUrl":"https://doi.org/10.2139/ssrn.2612265","url":null,"abstract":"In this study we analyze the determinants of airline price dispersion. We particularly concentrate on the conduct and marginal cost efficiency. The effect of conduct on price dispersion seems to depend on the characteristics of the market. For the big city routes, we observe positive effect; and for the leisure routes we find negative effect. Also, we find that margial cost efficiency has a negative effect on price dispersion.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"99 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125405507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2016-11-05DOI: 10.1108/IJRDM-07-2015-0094
Abhijeet Ghadge, Qifan Yang, N. Caldwell, Christian König, M. Tiwari
Purpose The purpose of this paper is to find a sustainable facility location solution for a closed-loop distribution network in the uncertain environment created by of high levels of product returns from online retailing coupled with growing pressure to reduce carbon emissions. Design/methodology/approach A case study approach attempts to optimize the distribution centre (DC) location decision for single and double hub scenarios. A hybrid approach combining centre of gravity and mixed integer programming is established for the un-capacitated multiple allocation facility location problem. Empirical data from a major national UK retail distributor network is used to validate the model. Findings The paper develops a contemporary model that can take into account multiple factors (e.g. operational and transportation costs and supply chain (SC) risks) while improving performance on environmental sustainability. Practical implications Based on varying product return rates, SC managers can decide whether to choose a single or a double hub solution to meet their needs. The study recommends a two hub facility location approach to mitigate emergent SC risks and disruptions. Originality/value A two-stage hybrid approach outlines a unique technique to generate candidate locations under twenty-first century conditions for new DCs.
{"title":"Facility Location for a Closed-Loop Distribution Network: A Hybrid Approach","authors":"Abhijeet Ghadge, Qifan Yang, N. Caldwell, Christian König, M. Tiwari","doi":"10.1108/IJRDM-07-2015-0094","DOIUrl":"https://doi.org/10.1108/IJRDM-07-2015-0094","url":null,"abstract":"Purpose \u0000 \u0000 \u0000 \u0000 \u0000The purpose of this paper is to find a sustainable facility location solution for a closed-loop distribution network in the uncertain environment created by of high levels of product returns from online retailing coupled with growing pressure to reduce carbon emissions. \u0000 \u0000 \u0000 \u0000 \u0000Design/methodology/approach \u0000 \u0000 \u0000 \u0000 \u0000A case study approach attempts to optimize the distribution centre (DC) location decision for single and double hub scenarios. A hybrid approach combining centre of gravity and mixed integer programming is established for the un-capacitated multiple allocation facility location problem. Empirical data from a major national UK retail distributor network is used to validate the model. \u0000 \u0000 \u0000 \u0000 \u0000Findings \u0000 \u0000 \u0000 \u0000 \u0000The paper develops a contemporary model that can take into account multiple factors (e.g. operational and transportation costs and supply chain (SC) risks) while improving performance on environmental sustainability. \u0000 \u0000 \u0000 \u0000 \u0000Practical implications \u0000 \u0000 \u0000 \u0000 \u0000Based on varying product return rates, SC managers can decide whether to choose a single or a double hub solution to meet their needs. The study recommends a two hub facility location approach to mitigate emergent SC risks and disruptions. \u0000 \u0000 \u0000 \u0000 \u0000Originality/value \u0000 \u0000 \u0000 \u0000 \u0000A two-stage hybrid approach outlines a unique technique to generate candidate locations under twenty-first century conditions for new DCs.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123119937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We explore how pricing dynamics in the European airline industry vary with competition and document patterns that are consistent with intertemporal price discrimination. First, the rate at which prices increase over time decreases in competition, supporting the idea that competition restrains the ability of airlines to price-discriminate against late-arriving customers. Second, the sensitivity to competition increases in the heterogeneity of the customer base, reflecting that restraints on price discrimination are only relevant when there is initial scope for discrimination. The patterns explain 83 percent of the observed within-flight price dispersion and 17 percent of the cross-market variation in pricing dynamics.
{"title":"Dynamic Oligopoly Pricing: Evidence from the Airline Industry","authors":"Caspar Siegert, R. Ulbricht","doi":"10.2139/ssrn.2413180","DOIUrl":"https://doi.org/10.2139/ssrn.2413180","url":null,"abstract":"We explore how pricing dynamics in the European airline industry vary with competition and document patterns that are consistent with intertemporal price discrimination. First, the rate at which prices increase over time decreases in competition, supporting the idea that competition restrains the ability of airlines to price-discriminate against late-arriving customers. Second, the sensitivity to competition increases in the heterogeneity of the customer base, reflecting that restraints on price discrimination are only relevant when there is initial scope for discrimination. The patterns explain 83 percent of the observed within-flight price dispersion and 17 percent of the cross-market variation in pricing dynamics.","PeriodicalId":420374,"journal":{"name":"TransportRN: Transportation Costs (Topic)","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133875919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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