Term paper on price discrimination - Trustworthy Writing.
Price discrimination means that one is charging different prices to different consumers, whereby price cannot be explained by the differences in cost. In this type of environment, the price of airline seats would be a posted price and would stay the same until the flight would take off.
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This paper examines how price discrimination changes with market concentration in the airline market. The paper uses data on prices and ticket restrictions across various routes within the United States, controlling for distances and airport gate restrictions. Price discrimination is found to increase as the markets become more competitive.
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