6533b860fe1ef96bd12c31b0
RESEARCH PRODUCT
Price dispersion, competition, and the role of online travel agents: Evidence from business routes in the Italian airline market
Fabio ZambutoPaolo RomaGiovanni Perronesubject
Competition (economics)CommercePrice dispersion Competition Online travel agents Airline industryPrice dispersionTransportationBusinessBusiness and International ManagementSettore ING-IND/35 - Ingegneria Economico-GestionaleIndustrial organizationCivil and Structural EngineeringCommunication channeldescription
Abstract In this article, using data from the Italian airline market, we study the role of online travel agents (OTAs) in driving price dispersion as compared to the effect of airlines’ websites. Specifically, we investigate how distinctive factors between OTAs and airlines’ direct channels influence price dispersion. We find that after controlling for OTAs’ features related to airline competition, price dispersion should be lower in the OTA channel relative to airlines’ direct channels. On the other hand, we also find that OTAs’ features related to the presence of airline competition play in favor of higher price dispersion in such indirect channel.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2014-09-01 |