Airline competition leads to lower ticket prices for consumers.
The article discusses how airlines set prices in the air transport market. They found that airlines use different pricing strategies, even when facing competition. Some airlines adjust prices based on historical data, while others differentiate their strategies to maximize revenue. The researchers studied French data on transatlantic routes and found that prices depend on the reservation date, route, and departure day. They also discovered that prices are influenced by competitors' prices on the same routes in previous days.