Competition and price dispersion: evidence from airline and high-speed rail competition in China-Reference-Cited by-同舟云学术

Competition and price dispersion: evidence from airline and high-speed rail competition in China

Published:2023-09-26 Issue: Volume: Page:
ISSN:0960-6491
Container-title:Industrial and Corporate Change
language:en
Short-container-title:

Author:

Du Zaichao¹^ORCID,Li Han²,Wei Feng³,Zhang Lan⁴

Affiliation:

1. School of Economics, Fudan University , 600 Guoquan Road, Shanghai 200433, China . e-mail: zaichaodu@fudan.edu.cn

2. School of International Business, Southwestern University of Finance and Economics , 555 Liutai Avenue, Chengdu, Sichuan 611130, China . e-mail: hli@swufe.edu.cn

3. College of Economics, Sichuan Agricultural University , 211 Huimin Road, Chengdu, Sichuan 611130, China . e-mail: weifeng@sicau.edu.cn

4. School of Economics, Shandong University , 27 Shanda Nanlu, Jinan, Shandong 250100, China . e-mail: zhanglan@sdu.edu.cn

Abstract

Abstract The introduction of the Beijing–Shanghai high-speed rail (Launch) and the Wenzhou bullet-train collision (Crash) in China provided a unique occasion to study the effect of competition on price dispersion. Results show that price dispersion increased by about 48% after the Launch, as airlines offered greater discounts to price-elastic consumers than to price-inelastic consumers. By contrast, price dispersion decreased by about 55% after the Crash, as airlines raised prices more for price-elastic consumers than for price-inelastic consumers.

Funder

Humanities and Social Sciences Fund, Ministry of Education of China

National Natural Science Foundation of China

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,General Economics, Econometrics and Finance,Management of Technology and Innovation

Link

https://academic.oup.com/icc/advance-article-pdf/doi/10.1093/icc/dtad036/51770088/dtad036.pdf

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