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Willingness to pay for airline services attributes: evidence from a stated preferences choice game
De Menezes, António Gomes
Vieira, J. C.
2008
Abstract
We analyze consumer preferences for airline service attributes between Ponta Delgada and Lisbon: the
most important air corridor between the Azores and Mainland Portugal. Owing to stringent regulations,
which fall under the European Union Public Service Obligations (PSOs) domain, there are no revealed
preferences data suitable to study consumer preferences. Hence, we conduct a stated preferences choice
game and estimate a microeconometric model à la McFadden. Our results are statistically significant and
imply willingness to pay measures economically high for attributes such as punctuality warranties and
comfort. Willingness to pay for additional daily flights is quite low. This result is important to how should
the policy maker liberalize this sector.
Series
European Transport / Trasporti Europei
XIII (2008) 39
Publisher
EUT Edizioni Università di Trieste
ISTIEE Istituto per lo studio dei trasporti nell’integrazione economica europea
Source
A. G. de Menezes, J. C. Vieira, "Willingness to pay for airline services attributes: evidence from a stated preferences choice game", in: European Transport / Trasporti Europei, XIII (2008) 39, pp. 1-13.
Languages
en
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