Price dispersion under costly capacity and demand uncertainty:
This paper tests the empirical importance of the price dispersion predictions of the Prescott-Eden-Dana (PED) models. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be explained by the different selling probabilities. The PE...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Cambridge, Mass.
National Bureau of Economic Research
2007
|
| Series: | Working paper series / National Bureau of Economic Research
13075 |
| Online Access: | Volltext |
| Summary: | This paper tests the empirical importance of the price dispersion predictions of the Prescott-Eden-Dana (PED) models. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be explained by the different selling probabilities. The PED models predict that a lower selling probability leads to a higher price. Moreover, this effect is larger in more competitive markets. Despite its applications to several important market phenomena, there exists little empirical evidence supporting the PED models, mostly because of the difficulty of coming up with an appropriate measure of the selling probabilities. Using a unique panel of U.S. airline fares and seat inventories, we find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand uncertainty on fares, we also obtain evidence of second degree price discrimination in the form of advance-purchase discounts. |
| Physical Description: | 39 S. graph. Darst. 22 cm |
Staff View
MARC
| LEADER | 00000nam a2200000zcb4500 | ||
|---|---|---|---|
| 001 | BV023592987 | ||
| 003 | DE-604 | ||
| 005 | 20080327000000.0 | ||
| 007 | t | ||
| 008 | 070607s2007 xxud||| |||| 00||| eng d | ||
| 035 | |a (OCoLC)255851015 | ||
| 035 | |a (DE-599)GBV529633345 | ||
| 040 | |a DE-604 |b ger | ||
| 041 | 0 | |a eng | |
| 044 | |a xxu |c XD-US | ||
| 049 | |a DE-521 | ||
| 100 | 1 | |a Escobari, Diego |e Verfasser |0 (DE-588)133357163 |4 aut | |
| 245 | 1 | 0 | |a Price dispersion under costly capacity and demand uncertainty |c Diego Escobari ; Li Gan |
| 264 | 1 | |a Cambridge, Mass. |b National Bureau of Economic Research |c 2007 | |
| 300 | |a 39 S. |b graph. Darst. |c 22 cm | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 1 | |a Working paper series / National Bureau of Economic Research |v 13075 | |
| 520 | 8 | |a This paper tests the empirical importance of the price dispersion predictions of the Prescott-Eden-Dana (PED) models. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be explained by the different selling probabilities. The PED models predict that a lower selling probability leads to a higher price. Moreover, this effect is larger in more competitive markets. Despite its applications to several important market phenomena, there exists little empirical evidence supporting the PED models, mostly because of the difficulty of coming up with an appropriate measure of the selling probabilities. Using a unique panel of U.S. airline fares and seat inventories, we find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand uncertainty on fares, we also obtain evidence of second degree price discrimination in the form of advance-purchase discounts. | |
| 700 | 1 | |a Gan, Li |e Verfasser |0 (DE-588)128970022 |4 aut | |
| 776 | 0 | 8 | |i Erscheint auch als |n Online-Ausgabe |
| 810 | 2 | |a National Bureau of Economic Research <Cambridge, Mass.> |t NBER working paper series |v 13075 |w (DE-604)BV002801238 |9 13075 | |
| 856 | 4 | 1 | |u http://papers.nber.org/papers/w13075.pdf |z kostenfrei |3 Volltext |
| 999 | |a oai:aleph.bib-bvb.de:BVB01-016908317 | ||
Record in the Search Index
| _version_ | 1804138252056133632 |
|---|---|
| adam_txt | |
| any_adam_object | |
| any_adam_object_boolean | |
| author | Escobari, Diego Gan, Li |
| author_GND | (DE-588)133357163 (DE-588)128970022 |
| author_facet | Escobari, Diego Gan, Li |
| author_role | aut aut |
| author_sort | Escobari, Diego |
| author_variant | d e de l g lg |
| building | Verbundindex |
| bvnumber | BV023592987 |
| ctrlnum | (OCoLC)255851015 (DE-599)GBV529633345 |
| format | Book |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>02177nam a2200325zcb4500</leader><controlfield tag="001">BV023592987</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20080327000000.0</controlfield><controlfield tag="007">t</controlfield><controlfield tag="008">070607s2007 xxud||| |||| 00||| eng d</controlfield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)255851015</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)GBV529633345</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="044" ind1=" " ind2=" "><subfield code="a">xxu</subfield><subfield code="c">XD-US</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-521</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Escobari, Diego</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)133357163</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Price dispersion under costly capacity and demand uncertainty</subfield><subfield code="c">Diego Escobari ; Li Gan</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Cambridge, Mass.</subfield><subfield code="b">National Bureau of Economic Research</subfield><subfield code="c">2007</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">39 S.</subfield><subfield code="b">graph. Darst.</subfield><subfield code="c">22 cm</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">n</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">nc</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="1" ind2=" "><subfield code="a">Working paper series / National Bureau of Economic Research</subfield><subfield code="v">13075</subfield></datafield><datafield tag="520" ind1="8" ind2=" "><subfield code="a">This paper tests the empirical importance of the price dispersion predictions of the Prescott-Eden-Dana (PED) models. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be explained by the different selling probabilities. The PED models predict that a lower selling probability leads to a higher price. Moreover, this effect is larger in more competitive markets. Despite its applications to several important market phenomena, there exists little empirical evidence supporting the PED models, mostly because of the difficulty of coming up with an appropriate measure of the selling probabilities. Using a unique panel of U.S. airline fares and seat inventories, we find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand uncertainty on fares, we also obtain evidence of second degree price discrimination in the form of advance-purchase discounts.</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Gan, Li</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)128970022</subfield><subfield code="4">aut</subfield></datafield><datafield tag="776" ind1="0" ind2="8"><subfield code="i">Erscheint auch als</subfield><subfield code="n">Online-Ausgabe</subfield></datafield><datafield tag="810" ind1="2" ind2=" "><subfield code="a">National Bureau of Economic Research <Cambridge, Mass.></subfield><subfield code="t">NBER working paper series</subfield><subfield code="v">13075</subfield><subfield code="w">(DE-604)BV002801238</subfield><subfield code="9">13075</subfield></datafield><datafield tag="856" ind1="4" ind2="1"><subfield code="u">http://papers.nber.org/papers/w13075.pdf</subfield><subfield code="z">kostenfrei</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="999" ind1=" " ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-016908317</subfield></datafield></record></collection> |
| id | DE-604.BV023592987 |
| illustrated | Illustrated |
| index_date | 2024-07-02T22:41:31Z |
| indexdate | 2024-07-09T21:25:14Z |
| institution | BVB |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-016908317 |
| oclc_num | 255851015 |
| open_access_boolean | 1 |
| owner | DE-521 |
| owner_facet | DE-521 |
| physical | 39 S. graph. Darst. 22 cm |
| publishDate | 2007 |
| publishDateSearch | 2007 |
| publishDateSort | 2007 |
| publisher | National Bureau of Economic Research |
| record_format | marc |
| series2 | Working paper series / National Bureau of Economic Research |
| spelling | Escobari, Diego Verfasser (DE-588)133357163 aut Price dispersion under costly capacity and demand uncertainty Diego Escobari ; Li Gan Cambridge, Mass. National Bureau of Economic Research 2007 39 S. graph. Darst. 22 cm txt rdacontent n rdamedia nc rdacarrier Working paper series / National Bureau of Economic Research 13075 This paper tests the empirical importance of the price dispersion predictions of the Prescott-Eden-Dana (PED) models. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be explained by the different selling probabilities. The PED models predict that a lower selling probability leads to a higher price. Moreover, this effect is larger in more competitive markets. Despite its applications to several important market phenomena, there exists little empirical evidence supporting the PED models, mostly because of the difficulty of coming up with an appropriate measure of the selling probabilities. Using a unique panel of U.S. airline fares and seat inventories, we find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand uncertainty on fares, we also obtain evidence of second degree price discrimination in the form of advance-purchase discounts. Gan, Li Verfasser (DE-588)128970022 aut Erscheint auch als Online-Ausgabe National Bureau of Economic Research <Cambridge, Mass.> NBER working paper series 13075 (DE-604)BV002801238 13075 http://papers.nber.org/papers/w13075.pdf kostenfrei Volltext |
| spellingShingle | Escobari, Diego Gan, Li Price dispersion under costly capacity and demand uncertainty |
| title | Price dispersion under costly capacity and demand uncertainty |
| title_auth | Price dispersion under costly capacity and demand uncertainty |
| title_exact_search | Price dispersion under costly capacity and demand uncertainty |
| title_exact_search_txtP | Price dispersion under costly capacity and demand uncertainty |
| title_full | Price dispersion under costly capacity and demand uncertainty Diego Escobari ; Li Gan |
| title_fullStr | Price dispersion under costly capacity and demand uncertainty Diego Escobari ; Li Gan |
| title_full_unstemmed | Price dispersion under costly capacity and demand uncertainty Diego Escobari ; Li Gan |
| title_short | Price dispersion under costly capacity and demand uncertainty |
| title_sort | price dispersion under costly capacity and demand uncertainty |
| url | http://papers.nber.org/papers/w13075.pdf |
| volume_link | (DE-604)BV002801238 |
| work_keys_str_mv | AT escobaridiego pricedispersionundercostlycapacityanddemanduncertainty AT ganli pricedispersionundercostlycapacityanddemanduncertainty |