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Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/231235
Income-Based Directional Price Discrimination Evidence from European Airline Markets
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This paper investigates income-based directional price discrimination on international airline routes. I construct a real-time dataset of directional fare differences for major European hub airports between February and July 2026 and compare mirrored roundtrips using matching strategies that either assign passengers to the same physical flight components or create closely matched counterfactual fares. The results show that passengers originating in higher-income markets systematically pay higher fares than passengers originating in lower-income markets. In the baseline national GDP specification, a 10,000 USD increase in the income difference raises the directional fare premium by approximately 3.00 to 3.43 USD. The dynamic specifications indicate that this premium tends to become larger in shorter booking windows, especially when the comparison isolates the same underlying flight components. The results also show that the income premium decreases with the number of effective competitors, suggesting that income-based directional fare premia are a signal of airline market power.
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Treballs Finals del Màster d'Economia, Facultat d'Economia i Empresa, Universitat de Barcelona. Curs: 2025-2026, Tutor: Joan Calzada i Xavier Fageda
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BRUNNER, Joshua Francisco. Income-Based Directional Price Discrimination Evidence from European Airline Markets. [consulted: 9 of September of 2026]. Available at: https://hdl.handle.net/2445/231235