Airline choice, switching costs and frequent flyer programs

Löfgren, Åsaswe
Carlsson, Fredrikswe
Department of Economicsswe
2006-12-15swe
2007-02-09T11:15:51Z
2007-02-09T11:15:51Z
2004swe
Switching costs are costs that customers face when switching from one firm to another. In markets such as the airline market where repeated purchases are common, switching costs may be substantial. In this paper we estimate the switching costs for domestic airline routes in Sweden between 1992 and 2002. In addition we also test for the determinants of switching costs. In particular we test to what extent factors such as frequent flyer programs and flag carriers have an effect on switching costs. The paper ends with a brief discussion on the welfare consequences of switching cots, where the connection between habit formation and switching costs is discussed.swe
14 pagesswe
160293 bytes
application/pdf
3341swe
Göteborg University. School of Business, Economics and Lawswe
1403-2465swe
http://hdl.handle.net/2077/2812
enswe
Working Papers in Economicsswe
Switching costs; frequent flyer programs; habit formation.swe
Economicsswe
Airline choice, switching costs and frequent flyer programsswe
Reportswe

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