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Airline Pricing

?Is really, really complicated.

It would be fascinating to study the pricing algorithms and pricing operations of a major airline. Since the prices of the entire industry are so shrouded in mystery, how do you even respond to changes in your competitors’ prices? You can’t just go look in their store window. Are there teams of people inside American Airlines constantly looking up United fares on Orbitz? And how do you turn that into some kind of systematic data? The fact that any airline functions properly ever is an absolute miracle to me.

Christopher Hayes is the Washington, D.C. Editor of The Nation.

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