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KevinSimler's profile
Kevin Simler
Kevin Simler
Kevin Simler
@KevinSimler

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Kevin Simler

@KevinSimler

Writer, software person, armchair anthropologist, dilettante. All genders, all political opinions welcome. Book: https://amzn.com/0190495995/ 

San Francisco, CA
meltingasphalt.com
Joined March 2011

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    1. Cesar A. Hidalgo‏ @cesifoti Jul 28
      • Report Tweet

      Cesar A. Hidalgo Retweeted Robert H Frank

      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 …

      Cesar A. Hidalgo added,

      Robert H Frank @econnaturalist
      Economic Naturalist Question #16. Why are round-trip airfares from the mainland to Honolulu lower than round-trip airfares from Honolulu to the mainland? pic.twitter.com/TPbzdEedbd
      Show this thread
      3 replies 4 retweets 19 likes
      Show this thread
    2. Cesar A. Hidalgo‏ @cesifoti Jul 28
      • Report Tweet

      In the airline network some airports are “destinations” and others are “hubs.” A person flying from a destination to a hub, has to pay the airline the opportunity of selling that same seat to someone making a longer trip (eg Honolulu London vis Atlanta or Dallas). 2/3

      2 replies 0 retweets 4 likes
      Show this thread
    3. Cesar A. Hidalgo‏ @cesifoti Jul 28
      • Report Tweet

      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

      1 reply 1 retweet 13 likes
      Show this thread
    4. Kevin Simler‏ @KevinSimler Jul 28
      • Report Tweet
      Replying to @cesifoti

      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.

      1 reply 0 retweets 1 like
    5. Cesar A. Hidalgo‏ @cesifoti Jul 28
      • Report Tweet
      Replying to @KevinSimler

      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.

      2 replies 0 retweets 0 likes
      Kevin Simler‏ @KevinSimler Jul 28
      • Report Tweet
      Replying to @cesifoti

      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...?

      6:49 PM - 28 Jul 2019
      0 replies 0 retweets 0 likes

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