Reference : Accounting for price endogeneity in airline itinerary choice models
Scientific conferences in universities or research centers : Scientific conference in universities or research centers
Business & economic sciences : Quantitative methods in economics & management
http://hdl.handle.net/2268/197441
Accounting for price endogeneity in airline itinerary choice models
English
Lurkin, Virginie mailto [Université de Liège > HEC-Ecole de gestion : UER > UER Opérations : Informatique de gestion >]
26-May-2016
Seminars EPFL - TRANSP-OR
May 26, 2016
EPFL - TRANSPORT AND MOBILITY LABORATORY TRANSP-OR
Lausanne
Suisse
[en] Air travel ; itinerary choice models ; endogeneity
[en] This study formulates an itinerary choice model that is consistent with those used by industry and corrects for price endogeneity using a control function that uses several types of instrumental variables. We estimate our models using database of more than 3 million tickets provided by the Airlines Reporting Corporation. Results based on Continental U.S. markets for May 2013 departures show that models that fail to account for price endogeneity overestimate customers' value of time and result in biased price estimates and incorrect pricing recommendations. Extensions to advanced discrete choice models show the importance of accounting for inter-alternative substitution for products that share similar departure times.
QuantOM
Fonds de la Recherche Scientifique (Communauté française de Belgique) - F.R.S.-FNRS
Researchers ; Professionals
http://hdl.handle.net/2268/197441

There is no file associated with this reference.

Bookmark and Share SFX Query

All documents in ORBi are protected by a user license.