β Scribed by Claudio A. Piga; Nicola Filippi
No coin nor oath required. For personal study only.
The first part of the paper develops a theoretical framework for the analysis of strategic behaviour of European lowβcost airlines that emphasises the role of product differentiation. The second part uses original survey data to assess the effectiveness of lowβcost airlines' distribution strategies. Finally, an econometric model is developed to assess the joint impact of the factors affecting the level of the fares charged by lowβcost airlines. The evidence suggests that, among other things, the highest prices normally are paid for tickets bought between 30 and 8 days before departure, and thus indicates an original pricing strategy that differentiates lowβcost airlines from traditional carriers. Copyright Β© 2002 John Wiley & Sons, Ltd.
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