The Welfare Effects of Dynamic Pricing: Evidence from Airline Markets

This paper was previously titled "Dynamic Airline Pricing and Seat Availability." I thank Steve Berry, Judy Chevalier, Jim Dana, Drew DiPrinzio, Tom Holmes, Shih-Hsuan Hsu, Olivia Natan, Aniko Oery, Hayden Parsley, Amil Petrin, Tom Quan, Timothy Schwieg, and Joel Waldfogel for comments. I thank the seminar participants at the Federal Reserve Bank of Minneapolis, Yale School of Management, University of Chicago - Booth, Georgetown University, University of British Columbia, University of Rochester - Simon, Dartmouth University, Northwestern University - Kellogg, Federal Reserve Board, Reserve Bank of Richmond, Indiana University, Indiana University - Kelley, Marketing Science, Stanford Institute for Theoretical Economics (SITE), and the University of Pennsylvania for comments. I also thank the Opportunity & Inclusive Growth Institute at the Federal Reserve Bank of Minneapolis for providing resources that supported this research. Finally, I thank the Yale School of Management for providing the computational resources used in this study. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.