| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w22730 |
| 来源ID | Working Paper 22730 |
| Accounting for Price Endogeneity in Airline Itinerary Choice Models: An Application to Continental U.S. Markets | |
| Virginie Lurkin; Laurie A. Garrow; Matthew J. Higgins; Jeffrey P. Newman; Michael Schyns | |
| 发表日期 | 2016-10-17 |
| 出版年 | 2016 |
| 语种 | 英语 |
| 摘要 | Network planning models, which forecast the profitability of airline schedules, support many critical decisions, including equipment purchase decisions. Network planning models include an itinerary choice model that is used to allocate air total demand in a city pair to different itineraries. Multinomial logit (MNL) models are commonly used in practice and capture how individuals make trade-offs among different itinerary attributes; however, none that we are aware of account for price endogeneity. This study formulates an itinerary choice model that is consistent with those used by industry and corrects for price endogeneity using a control function that uses several types of instrumental variables. We estimate our model using a database of more than 3 million tickets provided by the Airlines Reporting Corporation. Results based on Continental U.S. markets for May 2013 departures show that models that fail to account for price endogeneity overestimate customers’ value of time and result in biased price estimates and incorrect pricing recommendations. The size and comprehensiveness of our database allows us to estimate highly refined departure time of day preference curves that account for distance, direction of travel, number of time zones traversed, departure day of week and itinerary type (outbound, inbound or one-way). These time of day preference curves can be used by airlines, researchers, and government organizations in the evaluation of different policies such as congestion pricing. |
| 主题 | Industrial Organization ; Market Structure and Firm Performance ; Industry Studies ; Other ; Accounting, Marketing, and Personnel |
| URL | https://www.nber.org/papers/w22730 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/580404 |
| 推荐引用方式 GB/T 7714 | Virginie Lurkin,Laurie A. Garrow,Matthew J. Higgins,et al. Accounting for Price Endogeneity in Airline Itinerary Choice Models: An Application to Continental U.S. Markets. 2016. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w22730.pdf（1341KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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