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Alderighi M.,University Valle dAosta | Alderighi M.,Bocconi University | Cento A.,Air France KLM | Nijkamp P.,VU University Amsterdam | Rietveld P.,VU University Amsterdam
Journal of Transport Geography | Year: 2012

This paper investigates the price-setting behavior of full-service airlines in the European passenger aviation market. We develop a model of airline competition, which accommodates various market structures, some of which include low-cost players. Using data on published airfares of Lufthansa, British Airways, Alitalia and KLM for the main city-pairs from Italy to the rest of Europe, our empirical findings substantially confirm the propositions of the theoretical model. We find that competition among full-service carriers appears to affect the price levels of the business and the leisure segments asymmetrically: there are small reductions in the leisure segments and significant reductions in the business segment of the aviation market. In contrast, competition with low-cost carriers reduces both the business and leisure fares of full-service carriers quite uniformly, with an emphasis on the mid-segment fares. © 2012 Elsevier Ltd. Source

Alderighi M.,University Valle dAosta | Alderighi M.,Bocconi University | Baudino M.,Erasmus University Rotterdam
Energy Economics | Year: 2015

This paper studies how gas stations adjust their gasoline and diesel prices in response to their neighboring competitors. The empirical analysis relies on data collected from January to August 2011 on the daily prices of 20 gas stations located in Cuneo, Italy. These data show significant price uniformity, especially within the same geographical area of the town. Approximately one-third of gas stations responded within a day to targeted competitors' price changes, indicating some evidence of price matching behavior in the industry. Additionally, there is some, but discontinuous, geographical price propagation, testifying to the presence of a weak domino effect. Finally, spatial econometric analysis suggests that there is spatial dependence between gas stations up to about 1.1 km. © 2015 Elsevier B.V.. Source

Alderighi M.,University Valle dAosta | Alderighi M.,Bocconi University | Cento A.,Air France KLM | Piga C.A.,Loughborough University
Journal of Air Transport Management | Year: 2011

Published fares London-Amsterdam are used to examine the pricing practices of low-cost and legacy carriers when operating in a large and crowded market. We investigate two strategies of market segmentation involving the time before departure the ticket has been bought, inter-temporal segmentation, and the duration of the stay, implicit segmentation. We find inter-temporal price discrimination emerges as an important strategy for all pricing but the two legacy carriers involved, British Airways and KLM, differ in their use of stay restrictions; British Airways does not assign a specific role to the duration of stay, while KLM make use of such rules extensively in price setting. © 2011 Elsevier Ltd. Source

Alderighi M.,University Valle dAosta | Alderighi M.,Bocconi University
Journal of Air Transport Management | Year: 2010

There are substantial fare dispersions in the airline industry. There are various theoretical explanations of this, but they only provide a qualitative justification of the phenomenon. This paper simulates the quantitative outcome of three popular models to evaluate their ability to generate substantial fare dispersions. We find that, in duopoly, the maximum fare dispersion that each model can generate is quite limited; and, even for the most favourable case, it is about one-third of the observed fare variability. Moving to more competitive market structures, however, some models generate better results. © 2009 Elsevier Ltd. All rights reserved. Source

Alderighi M.,University Valle dAosta | Alderighi M.,Bocconi University | Bianchi C.,University of Pavia | Lorenzini E.,University of Pavia
Tourism Management | Year: 2016

This paper studies how local food specialities can affect the attractiveness of tourist destinations, distinguishing between market-expanding and business-stealing effects. We surveyed 1100 Italians in their home about their intention to visit or revisit three popular mountain resorts in Northern Italy (Valtellina, Valle d'Aosta, Trentino), and about their experience, knowledge, and appreciation of five well-known local food products of these places (Pizzoccheri pasta, Bresaola dried beef, Fontina cheese, Melinda apples, Speck smoked ham). We find that product experience positively affects the likelihood of (re)visiting both a product's place of origin and the other mountain destinations (market-expanding effect). Conversely, the correct identification of the product's place of origin may reduce the intention to (re)visit the other destinations (business-stealing effect). Finally, strong appreciation for a local food speciality has a positive effect only on the intention to (re)visit the place of origin. © 2016 Elsevier Ltd Source

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