Journal
ECONOMICS LETTERS
Volume 172, Issue -, Pages 85-88Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.econlet.2018.08.037
Keywords
Choice experiment; Generalized logit; Scale heterogeneity; Air travel
Categories
Funding
- Qatar National Research Fund, Qatar [YSREP 1-002-5-001]
Ask authors/readers for more resources
This study explores to what extent scale heterogeneity (i.e., varying standard deviation of the errors across consumers) is important in air travel choice using data from a stated preference discrete choice experiment. We used generalized mixed logit model (GMIXL) that nests scale and taste heterogeneity in the context of air travel ticket choice. We found empirical evidence of the importance of often neglected scale heterogeneity along with pre-dominant taste heterogeneity. The findings suggests that it is important to account for various forms of heterogeneity with GMIXL to model air travel demand to identify variety of consumer segments, which has implications for airline optimal menu of ticket offerings and pricing strategies. (C) 2018 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available