Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123726
Authors: 
Escobari, Diego
Year of Publication: 
2014
Citation: 
[Journal:] Economics Letters [ISSN:] 0165-1765 [Volume:] 124 [Issue:] 1 [Pages:] 26-29
Abstract: 
This paper uses an original panel dataset with posted prices and sales to estimate a dynamic demand. We find that consumers become more price sensitive as time to departure nears which is consistent with having lower valuations. This result provides empirical support to a key theoretical implication in Deneckere and Peck [Deneckere, R., Peck, J., 2012. Dynamic competition with random demand and costless search: A theory of price posting. Econometrica 80, 1185-1247] --- high-valuation consumers purchase earlier. We also find that the number of active consumers increases closer to departure.
Subjects: 
Dynamic demand
Consumers' valuations
Advance purchases
Airlines
JEL: 
C23
L93
R41
Persistent Identifier of the first edition: 
Document Type: 
Article

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