There is also an alternative explanation (which does not contradict this one) and is based on opportunity costs & networks. #EconTwitter 1/3https://twitter.com/econnaturalist/status/1154407122538569729 …
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From a network perspective, you can think of the opportunity cost as the number of neighbors, or “centrality” of a destination. If you fly towards a hub, and don’t make a connection, you must pay a fee for that lost opportunity. 3/3
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But the original question asked us to compare roundtrip tickets, each of which involves both legs (hub to periphery and vice versa). If it’s a Friday-to-Monday roundtrip, maybe there’s an asymmetry like you suggest.
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Exactly. The round trip from periphery to the hub has to pay the opportunity cost of someone flying from the periphery, through the hub, to a place that cannot be reached directly from the periphery.
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But if I take a Friday-to-Friday roundtrip from Hub to Periphery, then on Friday1 I fly from H to P and on Friday2 I fly from P to H. If I fly roundtrip from P to H, then on F1 I fly P to H and on F2 I fly H to P. I don’t see the difference...?
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