Some of
the studies supported the concept that the demand
elasticity faced by an individual airline is higher than
that faced by the whole market. For example, Oum,
Zhang, and Zhang (1993) estimated firm-specific
elasticities in the U.S. and estimated values ranging
from -1.24 to -2.34, while studies estimating market or
route elasticities ranged from -0.6 to -1.6. In contrast,
Alperovich and Machnes (1994) and Njegovan (2006)
used national-level measures of air travel in Israel and
the UK respectively and produced even lower elasticity
values (-0.27 and -0.7, respectively).