Prices and Departures in European Domestic Aviation Markets
Using data on 172 domestic city-pair markets in eight European countries, we investigate the effect of the market structure on airlines choices of departures and prices. We find that flag carriers have a higher number of departures than other airlines and that it is more likely that flag carriers are monopolists. At the same time flag carriers do not have a higher ticket price than other airlines. The influence of market power, measured with the Herfindahl index, does not have a significant effect on ticket prices, but a significant effect on the number of departures: decreased market concentration and an increased number of airlines results in increased aggregate frequencies. Comparing the predicted ticket prices, at sample mean, between monopoly and non-monopoly routes we can reject the hypothesis of differences in equilibrium price. However, the predicted aggregate number of departures, calculated at sample mean, is significantly higher at non-monopoly routes compared with monopoly routes.
If 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.
Volume (Year): 24 (2004)
Issue (Month): 1 (02)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/industrial+organization/journal/11151/PS2|
When requesting a correction, please mention this item's handle: RePEc:kap:revind:v:24:y:2004:i:1:p:37-49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
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.