Does Airline Competition Work In Short-Haul Markets?
AbstractIn this paper, we analyze how an airline can take advantage of airport dominance of a whole network in a market characterized by short-haul routes and congestion. In order to tackle this issue, we estimate an equation system, which is based on theoretical grounds, for the Spanish domestic market. We find that costs and demand benefits of airport dominance have to do with providing a high flight frequency. Such benefits can damage seriously the effectiveness of competition as long as the competitive status of major airline’s rivals is threatened.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0511010.
Length: 31 pages
Date of creation: 16 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 31
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Air Transportation; Multiple Equation Models; Oligopoly.;
Find related papers by JEL classification:
- L - Industrial Organization
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-19 (All new papers)
- NEP-COM-2005-11-19 (Industrial Competition)
- NEP-CSE-2005-11-19 (Economics of Strategic Management)
- NEP-MIC-2005-11-19 (Microeconomics)
- NEP-NET-2005-11-19 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hurdle, Gloria J, et al, 1989. "Concentration, Potential Entry, and Performance in the Airline Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 119-39, December.
- Marin, Pedro L., 1998. "Productivity differences in the airline industry: Partial deregulation versus short run protection," International Journal of Industrial Organization, Elsevier, vol. 16(4), pages 395-414, July.
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