Abstract

GARMENDIA-MORA, Juan Carlos  and  MORRIS-MOLINA, Lloyd Herbert. Price behavior in the domestic air passenger markets. estud.gerenc. [online]. 2022, vol.38, n.164, pp.308-319.  Epub Aug 18, 2022. ISSN 0123-5923.  https://doi.org/10.18046/j.estger.2022.164.5042.

The following is a study on the behavior of ticket prices in domestic passenger air transportation markets. The research had a quantitative approach and correlational scope; data were collected from 21 countries and the variables studied were market concentration, prices/km, number of airlines per route and per country, flight distance, and economic freedom index. There is a correlation of 0.61 between concentration levels and average prices per kilometer; there is also a correlation of -0.945 between price/km and the number of airlines per route. For each airline entering a route, prices can decrease by 11.6% and as the number of airlines operating in a country increases, the Herfindahl-Hirschman index and ticket prices per kilometer decrease.

Keywords : air transportation; market concentration; pricing; competition; routes.

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