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Schedule Competition Revisited

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  • Jan K. Brueckner

Abstract

This paper proposes and analyses a simple model of schedule competition, where transport providers choose service frequency and fares. The key assumptions are that passengers care about average schedule delay, a consequence of committing to travel before knowing their departure times, and that they exhibit brand loyalty to particular carriers. While the most general version of the model is not amenable to analysis, familiar functional-form assumptions produce a tractable framework that generates a host of useful comparativestatic results, along with a clear-cut efficiency evaluation. The model also sheds light on the phenomenon of excess transport capacity. © 2010 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 44 (2010)
Issue (Month): 3 (September)
Pages: 261-285

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Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:3:p:261-285

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. Jan K. Brueckner & Dan Luo, 2013. "Measuring Strategic Firm Interaction in Product-Quality Choices: The Case of Airline Flight Frequency," CESifo Working Paper Series 4066, CESifo Group Munich.
  2. Shah, Nilopa & Brueckner, Jan K., 2012. "Price and frequency competition in freight transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 938-953.

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