Willingness to pay for airline services attributes : microeconometric evidence from a stated preference discrete choice model

Menezes, António Gomes de; Vieira, José Cabral

http://hdl.handle.net/10400.3/1139

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Authors

Menezes, António Gomes de

Vieira, José Cabral

Abstract(s)

We analyze consumer preferences for airline services attributes between Ponta Delgada and Lisbon. For this purpose, we conduct a stated preferences choice game and estimate a microeconometric model à la McFadden (1974). Our results are statistically significant and imply willingness to pay measures economically high for attributes such as punctuality warranties and comfort. We interpret these results at the light of the theories found in Kahneman (2003). Willingness to pay for additional daily flights is quite low. This result is important to how should the policy maker liberalize this sector.