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Price Mark-Ups and Dispersion for Online Air Tickets: An Empirical Investigation into Scandinavian Online Travel Agencies

Samahita, Margaret LU (2011) NEKM01 20111
Department of Economics
Abstract (Swedish)
This essay investigates the prices quoted by online travel agents and airline companies for the same flight tickets. The theory of information and search cost would predict that prices should converge on the internet. This prediction is tested using data from six online travel agents and the airline companies quoted as having the cheapest prices for the corresponding dates and destinations. The results show that online travel agents consistently charge significantly higher prices than the airline companies, with substantial dispersion. This suggests that online search cost is not as low as had previously been assumed, at least for a proportion of searchers.
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author
Samahita, Margaret LU
supervisor
organization
course
NEKM01 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
Price dispersion, search costs, product differentiation, online travel agents
language
English
id
1969469
date added to LUP
2011-06-16 14:47:47
date last changed
2011-06-16 14:47:47
@misc{1969469,
  abstract     = {This essay investigates the prices quoted by online travel agents and airline companies for the same flight tickets. The theory of information and search cost would predict that prices should converge on the internet. This prediction is tested using data from six online travel agents and the airline companies quoted as having the cheapest prices for the corresponding dates and destinations. The results show that online travel agents consistently charge significantly higher prices than the airline companies, with substantial dispersion. This suggests that online search cost is not as low as had previously been assumed, at least for a proportion of searchers.},
  author       = {Samahita, Margaret},
  keyword      = {Price dispersion,search costs,product differentiation,online travel agents},
  language     = {eng},
  note         = {Student Paper},
  title        = {Price Mark-Ups and Dispersion for Online Air Tickets: An Empirical Investigation into Scandinavian Online Travel Agencies},
  year         = {2011},
}