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Publication Title

Applied Economics Letters


price dispersion, political polarization, COVID-19, airline


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.




First published in Applied Economics Letters,

This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License ( 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.

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