Competition Policy Center
U.S. Domestic Airline Pricing, 1995-2004
- Author(s): Borenstein, Severin
- et al.
Between 1995 and 2004, I find that airline prices fell more than 20% adjusted for inflation. I also show that premia at hub airports declined and that there is now substantially less disparity between the cheaper and more expensive airports than there was a decade ago. Still, I find that prices remain quite high at a few dominated airports.