The paper proposes an empirical framework with endogenous ‡ight frequency and quantity decisions on an airline market. The framework is built around the hypothesis that passengers value not only the ticket price but also the cost of delay associated with an airline. At sample mean values, the cost of delay is estimated to account for 34% of the $280 full price of a seat on a ‡ight. Marketing al...

In speculating that local public goods could be efficiently provided, Tiebout (1956) envisioned head taxes which would both finance public goods and price access to them. In practice, head taxes are not available, potentially leading to distortions. Hamilton (1975, 1976) responded that zoning can mimic a head tax by creating a price (or “admission ticket”) at the border. While the debate over t...

The demand for air transport is largely determined by the spending capacity of customers. This paper aims to offer more insight into the determinants of price elasticities in the aviation sector. It seeks to identify both common and contrasting factors that influence the price elasticities, on the basis of a comparative analysis among a large number of empirical studies in this field. By means ...

Abstract Tourist satisfaction is an important factor in improving the operating efficiency of leisure farms, which great significance service quality and management level tourist destinations. In this paper, a Questionnaire survey was adopted to investigate degree tourists products services Qingjing Farm verify index system. It one most widely used research methods. We discussed difference on v...

Internet-based virtual futures markets (VFMs) have been used in predicting election results and movie ticket sales. We construct an Internet-based VFM to predict an underlying stock price. Results of Granger causality tests and tests of directional accuracy show that a VFM with only a small number of participants (75) is able to generate informative futures prices useful in the prediction of th...

The internet presumably reduces search costs and creates an “efficient” market. Prior research quantifying the dispersion in the electronic market, however, has yielded mixed results. Some recent research has documented very low levels of dispersion in internet attributing it to the use of transaction prices as opposed to posted prices. We revisit this issue using contemporaneous online and off...

To fly from London to New York nowadays, it is customary to visit a traveling website such as http://travel.yahoo. com, in order to make the reservation. Surprisingly, there are more than 46 flights to choose from with varying prices ranging from $672 to $1,989. In fact, with an extra $3 the VIP services in coach would be granted, which infers that long gone are the days where many calls had to...

We propose that buyingand selling-price estimates reflect a focus on what the consumer forgoes in the potential exchange and that this notion offers insight into the well-known difference between those two types of value assessment. Buyers and sellers differ not simply in their valuation of the same item but also in how they assess the value. Buyers tend to focus on their sentiment toward what ...

Economists have long been puzzled by event-ticket underpricing: underpricing reduces revenue for the performer and encourages socially wasteful rent-seeking ticket brokers. What about using an auction? This paper studies introduction of auctions into this market Ticketmaster in mid-2000s. By combining primary-market auction data from with secondary-market resale value eBay, we show that Ticketm...