This paper uses transaction data to investigate the effects of Internet
purchase on airline fares. Our data include ticket characteristics,
restrictions, flight load factors, and dates and channel of purchase.
Controlling for ticket and flight characteristics, online purchasers
pay about 11 percent less than offline purchasers, which seems rooted
in more efficient shopping. The results do not support a spillover in
terms of reduced fares or dispersion from greater Internet shopping.
The paper also uses the data to reevaluate the relationship between
market concentration and fares, but fails to identify any statistically
significant, robust relationship.
Sengupta, Anirban, and Steven N. Wiggins.
"Airline Pricing, Price Dispersion, and Ticket Characteristics on and off the Internet."
American Economic Journal: Economic Policy,
Search; Learning; Information and Knowledge; Communication; Belief
Production, Pricing, and Market Structure; Size Distribution of Firms
Information and Internet Services; Computer Software