Economics, Econometrics and Finance
4 years ago

Online airline ticket buyers save 11% compared to offline purchasers.

American Economic Journal Economic Policy
Airline Pricing, Price Dispersion, and Ticket Characteristics On and Off the Internet
Anirban Sengupta, Steven N. Wiggins

Paper Summary

The study looked at how buying airline tickets online affects prices compared to buying offline. Online buyers pay around 11% less, likely because they shop more efficiently. However, this doesn't lead to lower prices overall. The study also checked if fewer airlines in a market mean higher prices, but found no clear link.

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