Price Competition between International Airline Alliances
AbstractThis paper develops a model of price competition between two international airline alliances, with consumers' preferences vertically differentiated by the number of stops. Alliances benefit the interline passengers. Alliances with antitrust immunity do not benefit interline passengers more than those without antitrust immunity, in contrast to the Cournot-type settings. While antitrust immunity leads to higher fares for non-stop travel between hubs of alliance partners, granting it might be necessary to induce consolidation between carriers. Formation of alliances with antitrust immunity is consistent with the proposed model, even though these are likely to decrease individual carriers' profit. © 2005 LSE and the University of Bath
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.
Volume (Year): 39 (2005)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://www.bath.ac.uk/e-journals/jtep
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bilotkach, Volodymyr & Hüschelrath, Kai, 2012.
"Airline alliances, antitrust immunity and market foreclosure,"
ZEW Discussion Papers
10-083 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Volodymyr Bilotkach & Kai Hüschelrath, 2013. "Airline Alliances, Antitrust Immunity, and Market Foreclosure," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1368-1385, October.
- Bilotkach, Volodymyr & Hüschelrath, Kai, 2010. "Airline alliances, antitrust immunity and market foreclosure," ZEW Discussion Papers 10-083, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bilotkach, Volodymyr, 2007. "Complementary versus semi-complementary airline partnerships," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 381-393, May.
- Bilotkach, Volodymyr & Fageda, Xavier, 1975- & Flores-Fillol, Ricardo, 2012.
"Airline Consolidation and the Distribution of Traffic between Primary and Secondary Hubs,"
2072/211632, Universitat Rovira i Virgili, Department of Economics.
- Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2013. "Airline consolidation and the distribution of traffic between primary and secondary hubs," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 951-963.
- Jan K. Brueckner & Pierre M. Picard, 2012.
"Airline Alliances, Carve-Outs and Collusion,"
CREA Discussion Paper Series
12-09, Center for Research in Economic Analysis, University of Luxembourg.
- Florent Venayre & Thierry Blayac, 2007. "L'organisation du marché européen des services de transport aérien face à la suppression annoncée des exemptions," Post-Print halshs-00645382, HAL.
- Volodymyr Bilotkach, 2007. "Issues in Network Development by National Airlines: The Case of Ukraine," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 61-80, January-F.
- Jan K. Brueckner & Stef Proost, 2009.
"Carve-Outs under Airline Antitrust Immunity,"
CESifo Working Paper Series
2848, CESifo Group Munich.
- repec:inr:wpaper:245923 is not listed on IDEAS
- W. Whalen, 2007. "A panel data analysis of code-sharing, antitrust immunity, and open skies treaties in international aviation markets," Review of Industrial Organization, Springer, vol. 30(1), pages 39-61, February.
- Bilotkach, Volodymyr & HÃ¼schelrath, Kai, 2012. "Airline alliances and antitrust policy: The role of efficiencies," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 76-84.
- Rafael Moner Colonques & Ricardo Flores Fillol, 2006. "Strategic Effects Of Airline Alliances," Working Papers. Serie AD 2006-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.