The Impact of Passenger Mix on Reported “Hub Premiums” in the U.S. Airline Industry

C-Tier
Journal: Southern Economic Journal
Year: 2005
Volume: 72
Issue: 2
Pages: 372-394

Authors (2)

Darin Lee Maria José Luengo‐Prado (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper analyzes U.S. airline price and passenger data disaggregated at the fare class level for the year 2000. We find that although average prices to and from most airlines' hubs tend to be higher than those throughout the remainder of their systems, much of the difference can be explained by passenger mix (i.e., the proportion of leisure versus business passengers). Our results suggest, therefore, that many of the reported “hub premiums” in the previous literature may be overstated.

Technical Details

RePEc Handle
repec:wly:soecon:v:72:y:2005:i:2:p:372-394
Journal Field
General
Author Count
2
Added to Database
2026-01-25