Originally Posted by
FlyerWx
The actual article is much more quantitative and detailed. Idk if you have access to the full thing, but let me know if you want me to send a copy.
Although the following key points still stand, and as you mention, it makes sense to most of us.
We find that the increase in the willingness to sacrifice current utility for the possibility of future rewards is stronger for consumers whose home airport is a hub of the airline, and for business travelers. We further show that when travelers are less likely to be shouldering the ticket costs personally, they are more likely to respond to these incentives by increasing their willingness to pay. This asymmetry in incentives explains much of the heterogeneity across business and leisure travelers, and is consistent with the previously hypothesized role of asymmetric incentives created by business travel in frequent-flyer programs
I am with the poster you replied to on this quote. No Si** Sh**ock.
For hub captives the FF value is higher as future flights will trend towards the hub carrier. While for free pax, future flights will be scattered. For the rest, we all know plenty of people will not treat OPM like their own.
I would note that the first part (hub captives) says nothing about moral hazard, only economic value.