Chapter 5 Distribution of Airline Tickets: A Tale of Two Market Structures
Pricing Behavior and Non-Price Characteristics in the Airline Industry
ISBN: 978-1-78052-468-9, eISBN: 978-1-78052-469-6
Publication date: 1 January 2012
Abstract
The vertical relationships literature has considered situations where both producers and retailers have a degree of market power. On one hand, retailers may have certain freedom in deciding what price to charge to the final consumers. On the other hand, large retailers may also pressurize producers (Wal-Mart is a classic example; see also Comanor and Rey (2000) for a formal treatment of this topic). At the same time, producers may pressurize retailers via resale price maintenance. The interplay of producers' and retailers' bargaining power, in addition to the structure (both horizontal and vertical) of product and distribution markets, eventually determine the sticker price faced by an unsuspecting consumer.
Citation
Bilotkach, V. and Pejcinovska, M. (2012), "Chapter 5 Distribution of Airline Tickets: A Tale of Two Market Structures", Peoples, J. (Ed.) Pricing Behavior and Non-Price Characteristics in the Airline Industry (Advances in Airline Economics, Vol. 3), Emerald Group Publishing Limited, Leeds, pp. 107-138. https://doi.org/10.1108/S2212-1609(2011)0000003007
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited