Does Competition Increase or Decrease Price Dispersion? Insights from One‐Way vs. Round‐Trip Airfares*
Published in Oxford Bulletin of Economics and Statistics • Mar 3, 2022
Authors:,,
Myongjin Kim
Leilei Shen
Qi Ge
Abstract
Abstract Does competition increase or decrease price dispersion? Our study addresses this long‐standing debate by presenting an intriguing empirical puzzle. Specifically, leveraging an extended panel from the U.S. airline industry between 1993 and 2013, we find that competition intensity and price d...
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