...he said, before proceeding to give an a priori argument.
What? If the airline industry had, say, Intel’s or Apple’s profit margins, then the argument that I gave would not hold. I left out what their profit margins were because I figured everyone in the conversation would either know already or look them up.
If anyone has any data about what the airline industry would look like without price discrimination I would be very interested to see it!
Check out, say, section 3 of this paper. (In general, “revenue management” is the term of art.) This article claims it adds 4-8% in revenue.
What? If the airline industry had, say, Intel’s or Apple’s profit margins, then the argument that I gave would not hold. I left out what their profit margins were because I figured everyone in the conversation would either know already or look them up.
Check out, say, section 3 of this paper. (In general, “revenue management” is the term of art.) This article claims it adds 4-8% in revenue.