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Airport and airlines competition: Incentives for vertical collusion

  • Barbot, Cristina
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    This paper develops a model of airport and airline competition in a three-stage game. We analyse incentives for vertical collusion between one airport and one airline that compete with another airport and another airline, by means of static and dynamic games. We find that incentives for collusion exist when airports and airlines have different market sizes and, under certain conditions, also when secondary airports and low cost airlines compete with main airports and full service airlines.

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    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 43 (2009)
    Issue (Month): 10 (December)
    Pages: 952-965

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    Handle: RePEc:eee:transb:v:43:y:2009:i:10:p:952-965
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    15. Tae Hoon Oum & Anming Zhang & Yimin Zhang, 2004. "Alternative Forms of Economic Regulation and their Efficiency Implications for Airports," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 38(2), pages 217-246, May.
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    17. James A. Brander & Anming Zhang, 1990. "Market Conduct in the Airline Industry: An Empirical Investigation," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 567-583, Winter.
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