Separating between unobserved consumer types: Evidence from airlines
We propose an alternative approach to identify unobserved consumer types and assess whether firms price discriminate. Unlike other screening schemes that rely on quantity discounts or product differentiation, in our finite mixture structure individuals have unit demands and the product is homogeneou...
| Autores principales: | , |
|---|---|
| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Western Economic Association International
2019
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/145743 |
| _version_ | 1855537101555105792 |
|---|---|
| author | Escobari, Diego Hernandez, Manuel A. |
| author_browse | Escobari, Diego Hernandez, Manuel A. |
| author_facet | Escobari, Diego Hernandez, Manuel A. |
| author_sort | Escobari, Diego |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We propose an alternative approach to identify unobserved consumer types and assess whether firms price discriminate. Unlike other screening schemes that rely on quantity discounts or product differentiation, in our finite mixture structure individuals have unit demands and the product is homogeneous. We implement the model using an original U.S. airlines data set. The results support the existence of two demand types. The high‐type “business” traveler is less price sensitive, has a higher valuation, and pays a higher price than the low type “tourist.” The proportion of high types also increases as the departure date nears. (JEL C23, L93, R41) |
| format | Journal Article |
| id | CGSpace145743 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Western Economic Association International |
| publisherStr | Western Economic Association International |
| record_format | dspace |
| spelling | CGSpace1457432024-10-25T08:04:38Z Separating between unobserved consumer types: Evidence from airlines Escobari, Diego Hernandez, Manuel A. models price discrimination social behaviour price policies air transport consumers discrimination We propose an alternative approach to identify unobserved consumer types and assess whether firms price discriminate. Unlike other screening schemes that rely on quantity discounts or product differentiation, in our finite mixture structure individuals have unit demands and the product is homogeneous. We implement the model using an original U.S. airlines data set. The results support the existence of two demand types. The high‐type “business” traveler is less price sensitive, has a higher valuation, and pays a higher price than the low type “tourist.” The proportion of high types also increases as the departure date nears. (JEL C23, L93, R41) 2019-12-09 2024-06-21T09:04:58Z 2024-06-21T09:04:58Z Journal Article https://hdl.handle.net/10568/145743 en Limited Access Western Economic Association International Escobari, Diego; and Hernandez, Manuel A. 2019. Separating between unobserved consumer types: Evidence from airlines. Economic Inquiry 57(2): 1215-1230. https://doi.org/10.1111/ecin.12736 |
| spellingShingle | models price discrimination social behaviour price policies air transport consumers discrimination Escobari, Diego Hernandez, Manuel A. Separating between unobserved consumer types: Evidence from airlines |
| title | Separating between unobserved consumer types: Evidence from airlines |
| title_full | Separating between unobserved consumer types: Evidence from airlines |
| title_fullStr | Separating between unobserved consumer types: Evidence from airlines |
| title_full_unstemmed | Separating between unobserved consumer types: Evidence from airlines |
| title_short | Separating between unobserved consumer types: Evidence from airlines |
| title_sort | separating between unobserved consumer types evidence from airlines |
| topic | models price discrimination social behaviour price policies air transport consumers discrimination |
| url | https://hdl.handle.net/10568/145743 |
| work_keys_str_mv | AT escobaridiego separatingbetweenunobservedconsumertypesevidencefromairlines AT hernandezmanuela separatingbetweenunobservedconsumertypesevidencefromairlines |