Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185596 
Year of Publication: 
2018
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2018-077/VIII
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
We examine the impact of airline codesharing on consumer choice behavior in non-stop international route markets. Using stated preference data, we document that consumer valuation of flights by alien foreign carriers is significantly higher if these flights are offered as codeshare products by consumers' own national carrier or, to a lesser extent, a neighboring national carrier. We empirically rule out quality improvements and frequent flier programs as underlying drivers and explore two alternative explanations: misconceptions about codesharing and codesharing as a quality signal. We find that misconceptions are widespread, but that they do not cause higher valuation of codeshare products. Consistent with signaling, however, codeshare products are valued higher by more risk-averse consumers and on less familiar routes.
Subjects: 
codesharing
consumer choice behavior
incomplete information
signaling
airline industry
JEL: 
L11
L15
L93
Document Type: 
Working Paper

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