Price Mark-Ups and Dispersion for Online Air Tickets: An Empirical Investigation into Scandinavian Online Travel Agencies
This essay investigates the prices quoted by online travel agents and airline companies for the same flight tickets. The theory of information and search cost would predict that prices should converge on the internet. This prediction is tested using data from six online travel agents and the airline companies quoted as having the cheapest prices for the corresponding dates and destinations. The re