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Is virtual codesharing a market segmenting mechanism employed by airlines?
Institution:1. University of Aveiro, Department of Biology & CESAM, Aveiro, Portugal;2. Department of Bioscience, Aarhus University, Vejlsovej 25, PO BOX 314, DK-8600 Silkeborg, Denmark;3. Department of Chemical Engineering, Universitat Rovira i Virgili, Tarragona, Catalonia, Spain;1. Research group of Mathematical Analysis, University of Almería, 04120 Almería, Spain;2. Department of Mathematical Sciences, Lewis & Clark College, Portland, OR 97219, USA;3. Department of Applied Mathematics, University of Granada, 18071 Granada, Spain;4. Department of Mathematics, University of Almería, 04120 Almería, Spain;1. Kansas State University, Department of Economics, 320 Waters Hall, Manhattan, KS 66506, United States;2. Feng Chia University, Department of Economics, 100 Wenhwa Road, Taichung, Taiwan;1. Academic Computer Centre Cyfronet AGH University of Science and Technology, Kraków, Poland;2. Department of Computer Science and Academic Computer Centre Cyfronet AGH University of Science and Technology, Kraków, Poland;3. Informatics Institute, University of Amsterdam, The Netherlands
Abstract:It has been suggested that virtual codesharing is a mechanism used by airlines to segment passengers based on their price sensitivity. The objective of this paper is to test whether passengers' choice behavior is consistent with market segmentation being the primary motive for virtual codesharing. The findings fail to support the market segmentation motive.
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