Combined effects of capacity and time on fares: : Insights from the yield management of a low-cost airline.

• Autores: Marco Alderighi, Marcella Nicolini, Claudio A. Piga
• Localización: The Review of economics and statistics, ISSN 0034-6535, Vol. 97, Nº 4, 2015, págs. 900-915
• Idioma: inglés
• DOI: 10.1162/rest_a_00451
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• Resumen

  • Based on two strands of theoretical research, this paper provides new evidence on how fares are jointly affected by in-flight seat availability and purchasing date. As capacity-based theories predict, it emerges that fares monotonically and substantially increase with flight occupancy. After controlling for capacity utilization, our analysis also supports time-based theories, indicating a U-shaped temporal profile over a two-month booking period, as well as a sharp increase in fares in the two weeks prior to departure.