Economics Seminar（2013-24）

Topic: Market Competition and Price Dispersion：Evidence from Chinese Airline Market along the Beijing-Shanghai High-Speed Railway

Speaker:Han Li

Affiliation: Southwestern University of Finance and Economics

Time:Tuesday, 12 Nov, 14:00-15:30pm

Location:Room217, Guanghua Building 2

Abstract：

In this paper, we investigate how the introduction of the Beijing-Shanghai High-Speed Railway affects airline market pricing along the route. We find that: (1) increased competition among the airlines increases price dispersion; (2) the price dispersion increases because the airline companies discount more on the price-elastic consumers than on the price-inelastic consumers. Further investigation based on a reverse exogenous demand shock caused by the Wenzhou Train Crash reinforces our conclusions.

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