Replication data for: Internet Penetration and Capacity Utilization in the US Airline Industry

Principal Investigator(s): View help for Principal Investigator(s) James D., Jr. Dana; Eugene Orlov

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Project Citation:

Dana, James D., Jr., and Orlov, Eugene. Replication data for: Internet Penetration and Capacity Utilization in the US Airline Industry. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114421V1

Project Description

Summary: Airline capacity utilization increased dramatically between 1993 and 2007, after staying fairly level following deregulation. We argue that consumers' use of the Internet to investigate and purchase airline tickets reduces market frictions and allows airlines to meet demand with less capacity and higher load factors. We find that differences in the rate of change of metropolitan area Internet penetration are positively correlated with differences in the rate of change of airlines' airport-pair load factors. Consistent with our explanation, this correlation is greater on flights in more competitive markets and on flights with fewer total passengers.

Scope of Project

JEL Classification:
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L86 Information and Internet Services; Computer Software
      L93 Air Transportation
      M15 IT Management

Geographic Coverage: United States

Time Period(s): 1/1997 – 12/2003

Universe: Airline/segment/quarter for the 20 largest airlines and between the 75 largest airports in the United States

Data Type(s): census/enumeration data; aggregate data

Methodology

Data Source: T-100 (Form 41) database from the Bureau of Transportation Statistics; Computer Use and Ownership Supplement to the Consumer Population Survey; DB1B database from the Bureau of Transportation Statistics; metropolitan-area demographic and economic data from the Bureau of Economic Analysis

Unit(s) of Observation: An airline, airport-pair segment in a year/quarter,

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Published Versions

V1 [2019-10-12]

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