Estimating own-price elasticities of air travel demand : The case of Norway

Building on the economic notion that only firms with market power dictate their production according to the price elasticity of demand, I build an IV regression model

The estimation result shows that income and price of substitute affects demand positively while own price affects it negatively.. The responsiveness of air transport demand to

Assumption 1: Own-price effects dominate the cumulative cross-price effects. This assumption ensures that demand declines if all prices increase by the same amount. Assumption 1c

However, if the demand is perfectly price-inelastic,

Second, the price elasticities of demand used for trips completed by employees and students at different HEIs are based on assumptions regarding the average price elasticities

some cohorts; (4) over the life cycle, purchase of poultry is expected to increase with age while the opposite is true for red meat; (5) the own-price elasticity for beef is

Klemperer (1990) on the other hand, model patent breadth both narrow and long, or broad and short, depending on the structure of demand. Depending on one’s view on

Keywords: gender, diversity, recruitment, selection process, retention, turnover, military culture,