The Impact of market structure and price discrimination strategies in the airline sector (original) (raw)

This paper investigates the factors influencing airlines' pricing strategies, focusing on intertemporal price discrimination (IPD) within southern Italian routes with limited intermodal competition. The findings indicate that more concentrated markets lead to higher fares, while competitive structures facilitate the adoption of IPD. Additionally, low-cost carriers (LCCs) exhibit more aggressive pricing behaviors, benefiting air travel accessibility through lower fares. Future research will expand the geographic scope to assess the effects of modal competition and local government subsidies on airline pricing.