Document Type
Article
Publication Date
2023
Publication Title
Applied Economics Letters
Keywords
price dispersion, political polarization, COVID-19, airline
Abstract
This paper analyzes the relationship between price dispersion and political polarization of the endpoint states on a given route during the COVID-19 pandemic. The sample includes ticket information from the DB1B database between 2020:Q1 and 2021:Q4. The fixed-effect panel instrument variable (IV) estimation finds evidence of increased price dispersion on routes connecting states led by a Republican governor than those linking Democrat-led states. My analysis adds to the literature by exploiting the impact of political factors (i.e. demand shocks triggered by the COVID-19 policy interventions) on price dispersion using the latest data.
Funding Source
This article was published Open Access thanks to a transformative agreement between Milner Library and Taylor & Francis.
DOI
10.1080/13504851.2023.2289417
Recommended Citation
Chen, Jihui, "Political Polarization and Price Dispersion: Recent Evidence from the Airline Industry During COVID-19" (2023). Faculty Publications – Economics. 15.
https://ir.library.illinoisstate.edu/fpecon/15
Comments
First published in Applied Economics Letters, https://doi.org/10.1080/13504851.2023.2289417.
This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc- nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.