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on Transport Economics |
| By: | Escobari, Diego; Mellado, Cristhian |
| Abstract: | This paper estimates the demand for flights in an international air travel market using a unique dataset with detailed information not only on flight choices but also on contemporaneous prices and characteristics of all the alternative non-booked flights. The estimation strategy employs a simple discrete choice random utility model that we use to analyze how choices and its response to prices depend on the departing airport, the identity of the carrier, and the departure date and time. The results show that a 10\% increase in prices in a 100-seat aircraft throughout a 100-period selling season decreases quantity demanded by 7.7 seats. We also find that the quantity demanded is more responsive to prices for Delta and American, during morning and evening flights and that the response to prices changes significantly over different departure dates. |
| Keywords: | Airline demand, discrete choice, flight choice, demand estimation. |
| JEL: | C25 L93 R41 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47943&r=tre |
| By: | Knieps, Günter |
| Abstract: | The aim of this paper is to analyze the liberalization of the aviation value chain and the remaining role of government policy. In particular, the role of sector-specific regulation of monopolistic bottleneck components of the air traffic value chain is analyzed. For competition on air transport markets and groundhandling services to operate efficiently, non-discriminatory access to complementary monopolistic airport infrastructures must be guaranteed. In particular, the evolution of market driven slot allocation and the role of airport regulation is analyzed. Finally, the issue of airport subsidies is taken into consideration. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:aluivr:146&r=tre |
| By: | Pouliot, Sebastien |
| Abstract: | Unlike regular cars, ex-fuel vehicles (FFVs) allow motorists to fuel on motor blends that contain between zero and one hundred percent of ethanol. This paper investigates how motorists arbitrage between hydrous ethanol and gasoline using aggregate fuel consumption data in Brazil. The ability of FFV motorists to arbitrage between fuel blends shapes of aggregate demands for hydrous ethanol and gasoline. I estimate using nonlinear seemingly unrelated regressions the demands for hydrous ethanol and gasoline in Brazil, and motorists preferences for hydrous ethanol. I nd that on average, accounting for the relative energy contents of the two fuels, FFV motorists in Brazil slightly discount hydrous ethanol over gasoline. Most consumers switch between fuels when their relative prices are at near parity. I nd that 20% of consumers still purchase hydrous ethanol when its price is about 10% above the price of gasoline. The distribution of preferences is not symmetric as 20% of consumers still purchase gasoline when there is a 15% discount on the price of hydrous ethanol. |
| Keywords: | Ethanol, Gasoline, Preferences, Flexible-fuel vehicles, Arbitrage, Consumer/Household Economics, International Development, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, |
| Date: | 2013–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150964&r=tre |
| By: | Vera Alves (Universidade do Porto); Rosa Forte (Faculdade de Economia, Universidade do Porto, and cef.up) |
| Abstract: | In the last decades there has been a gradual liberalisation of international air transport markets through the implementation of open skies agreements which seek the deregulation of the air transport industry and consequently the functioning of the market in a freer way. The objective of this work is to study the effects of an open skies agreement in order to understand if the airlines and the consumers will benefit after the market deregulation. With this purpose, we developed a Cournot model to compare the initial situation (without agreement) and the situation after the implementation of the open skies agreement. Based on the model developed it can be concluded that the prices on international market segments where competition increases should decline after market liberalisation, thus benefiting consumers. Regarding the incumbent airlines in the market, an open skies agreement should jeopardize the airlines that fail to operate new routes after the agreement, leading to decreased profits. |
| Keywords: | Open Skies agreement; Cournot model; Effects on prices; Firms’ profits. |
| JEL: | D43 D21 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:por:cetedp:1311&r=tre |
| By: | Prater, Marvin; O'Neil Jr., Daniel; Adam, Sparger |
| Abstract: | The rail industry is an integral part of the agricultural transportation system of the United States. For producers and shippers of bulk commodities, railroads are particularly important for the movement to end users, many of whom are located long distances from the farms. Information on rail shipments from States to regions across the nation, defined as Business Economic Areas, has been aggregated in this report. State rail receipts by origin State, or where shipments originated, has also been collected. Each State that received or shipped a substantial amount of at least one of three major crops (corn, soybeans, and wheat) by rail has been described in this report by its characteristics. A State level breakdown of rail shipments, rail receipts, grain and oilseed production, animal and poultry production, grain and oilseed exports, and grain and oilseed rail rates per ton-mile have been included. This information can help to explain the variations in shipments and shipment size of these commodities. A summary of grain movement in the United States is included, as are descriptions of grain movements in the 30 States that ship substantial amounts of grain. |
| Keywords: | rail, grain, soybeans, wheat, corn, livestock, agricultural transportation, oilseeds, Agribusiness, Livestock Production/Industries, Marketing, Productivity Analysis, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:151393&r=tre |