Demand Equation

1998

2005

2012

Variable

Coefficient

s.e.

Coefficient

s.e.

Coefficient

s.e.

Type L Consumer

Price

−24.442*

0.024

−23.876*

0.793

−21.8571*

0.113

Interstop

−1.7532*

0.000

−1.5883*

0.109

−1.7668*

0.017

Constant

−1.3932*

0.000

−4.0108*

0.105

−4.9981*

0.038

Type B Consumer

Price

−3.0360*

0.002

−3.4283*

0.155

−3.1476*

0.034

Interstop

−1.1661*

0.000

−1.6117*

0.015

−1.7324*

0.008

Constant

−6.1165*

0.002

−6.0170*

0.126

−2.9440*

0.021

Inconvenience

−1.9135*

0.001

−1.7379*

0.091

−1.7075*

0.012

HUB_Origin

0.0689

1.811

0.4171*

0.010

0.1267*

0.002

Tour

0.4094*

0.000

0.6535*

0.028

0.9080*

0.004

Slot-control

−0.6939*

0.000

−0.7363*

0.047

−0.5388*

0.008

Legacy_mkt

−0.0013

1.813

−0.0064*

0.000

−0.0051*

0.000

LCC_mkt

−0.0224

1.225

−0.0100*

0.000

−0.0122*

0.000

σ

0.0017

2.540

0.0000

0.000

0.0000

0.000

0.2352*

0.000

0.4446*

0.018

0.5624*

0.015

Marginal Cost Equation

Variable

Coefficient

s.e.

Coefficient

s.e.

Coefficient

s.e.

Constant

−2.8468*

0.117

−3.6070*

0.086

−2.7494*

0.038

Distance

0.0085

0.066

0.1882

0.047

0.0371

0.036

Distance2

−0.0295

0.020

−0.0497

0.013

−0.0009

0.010

HUB_MC

−0.2287*

0.015

−0.0298*

0.014

0.0055

0.011

Slot_MC

0.0613*

0.019

0.0487*

0.013

0.0538*

0.011

GMM objective

25601

22608

20266

Number of obs.

8150

11456

10429