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U.S. Domestic Airline Pricing, 1995-2004

  • Author(s): Borenstein, Severin
  • et al.
Abstract

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.

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