Dynamic Price Competition: Theory and Evidence from Airline Markets

The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. We thank the anonymous airline for giving us access to the data used in this study. Under the agreement with the authors, the airline had “the right to delete any trade secret, proprietary, or Confidential Information” supplied by the airline. All authors have no material financial relationships with entities related to this research. We gratefully acknowledge financial and computational support from the Yale School of Management. We thank Alessandro Bonatti, Chris Conlon, Jim Dana, Volker Nocke, Ariel Pakes, Ben Polak, Michael Riordan, Satoru Takahashi, Mike Whinston, and several conference and seminar participants.

• August 10, 2022