Understanding airline price dispersion in the presence of high-speed rail
Article
Article Title | Understanding airline price dispersion in the presence of high-speed rail |
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ERA Journal ID | 40708 |
Article Category | Article |
Authors | Ma, Wenliang (Author), Wang, Qiang (Author), Yang, Hangjun (Author), Zhang, Guoquan (Author) and Zhang, Yahua (Author) |
Journal Title | Transport Policy |
Journal Citation | 95, pp. 93-102 |
Number of Pages | 10 |
Year | 2020 |
Publisher | Elsevier |
Place of Publication | United Kingdom |
ISSN | 0967-070X |
1879-310X | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.tranpol.2020.05.015 |
Web Address (URL) | https://www.sciencedirect.com/science/article/abs/pii/S0967070X20303851 |
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. |
Keywords | Price dispersion; High-speed rail; Airline; Competition; Collusion |
ANZSRC Field of Research 2020 | 350901. Air transportation and freight services |
380117. Transport economics | |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | Capital University of Economics and Business, China |
University of International Business and Economics, China | |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q5w5z/understanding-airline-price-dispersion-in-the-presence-of-high-speed-rail
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