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Discounts and Public Service Obligations in the Airline Market: Lessons from Spain

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  • Joan Calzada

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  • Xavier Fageda

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  • Joan Calzada & Xavier Fageda, 2012. "Discounts and Public Service Obligations in the Airline Market: Lessons from Spain," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(4), pages 291-312, June.
  • Handle: RePEc:kap:revind:v:40:y:2012:i:4:p:291-312
    DOI: 10.1007/s11151-011-9331-7
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    References listed on IDEAS

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    1. Mark Armstrong, 2001. "Access Pricing, Bypass, and Universal Service," American Economic Review, American Economic Association, vol. 91(2), pages 297-301, May.
    2. George Williams, 2005. "European Experience with Direct Subsidization of Air Services," Public Money & Management, Taylor & Francis Journals, vol. 25(3), pages 155-161, June.
    3. Starkie, David & Starrs, Margaret, 1984. "Contestability and Sustainability in Regional Airline Markets," The Economic Record, The Economic Society of Australia, vol. 60(170), pages 274-283, September.
    4. H. Cremer & F. Gasmi & A. Grimaud & J. J. Laffont, 2001. "Universal Service: An economic perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(1), pages 5-43, March.
    5. Xavier Fageda, 2006. "Measuring Conduct and Cost Parameters in the Spanish Airline Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(4), pages 379-399, June.
    6. Hofer, Christian & Windle, Robert J. & Dresner, Martin E., 2008. "Price premiums and low cost carrier competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 864-882, September.
    7. Severin Borenstein, 1989. "Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 344-365, Autumn.
    8. James Nolan & Pamela Ritchie & John Rowcroft, 2005. "Small Market Air Service and Regional Policy," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 363-378, September.
    9. Youdi Schipper & Piet Rietveld & Peter Nijkamp, 2002. "European Airline Reform: An Empirical Welfare Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 36(2), pages 189-209, May.
    10. George Williams, 2005. "European Experience with Direct Subsidization of Air Services," Public Money & Management, Chartered Institute of Public Finance and Accountancy, vol. 25(3), pages 155-161, June.
    11. John D. Bitzan & Junwook Chi, 2006. "Higher Airfares to Small and Medium Sized Communities - Costly Service or Market Power?," Journal of Transport Economics and Policy, University of Bath, vol. 40(3), pages 473-501, September.
    12. Santana, Isabel, 2009. "Do Public Service Obligations hamper the cost competitiveness of regional airlines?," Journal of Air Transport Management, Elsevier, vol. 15(6), pages 344-349.
    13. Pai, Vivek, 2010. "On the factors that affect airline flight frequency and aircraft size," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 169-177.
    14. Chone, Philippe & Flochel, Laurent & Perrot, Anne, 2000. "Universal service obligations and competition," Information Economics and Policy, Elsevier, vol. 12(3), pages 249-259, September.
    15. Wei, Wenbin & Hansen, Mark, 2007. "Airlines' competition in aircraft size and service frequency in duopoly markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 409-424, July.
    16. Brueckner, Jan K & Spiller, Pablo T, 1994. "Economies of Traffic Density in the Deregulated Airline Industry," Journal of Law and Economics, University of Chicago Press, vol. 37(2), pages 379-415, October.
    17. Salvanes, Kjell G. & Steen, Frode & Sorgard, Lars, 2005. "Hotelling in the air? Flight departures in Norway," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 193-213, March.
    18. Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2010. "Scheduled service versus personal transportation: The role of distance," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 60-72, January.
    19. Billette de Villemeur, Etienne, 2004. "Regulation in the air: price-and-frequency caps," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(6), pages 465-476, November.
    20. Sorana, Valter, 2000. "Auctions for Universal Service Subsidies," Journal of Regulatory Economics, Springer, vol. 18(1), pages 33-58, July.
    21. Valletti, Tommaso M & Hoernig, Steffen & Barros, Pedro P, 2002. "Universal Service and Entry: The Role of Uniform Pricing and Coverage Constraints," Journal of Regulatory Economics, Springer, vol. 21(2), pages 169-190, March.
    22. Brueckner, Jan K. & Pai, Vivek, 2009. "Technological innovation in the airline industry: The impact of regional jets," International Journal of Industrial Organization, Elsevier, vol. 27(1), pages 110-120, January.
    23. Mirabel, F. & Poudou, J.-C. & Roland, M., 2009. "Universal service obligations: The role of subsidization schemes," Information Economics and Policy, Elsevier, vol. 21(1), pages 1-9, February.
    24. Thorsten Fischer & David R. Kamerschen, 2003. "Price-Cost Margins in the US Airline Industry using a Conjectural Variation Approach," Journal of Transport Economics and Policy, University of Bath, vol. 37(2), pages 227-259, May.
    25. Evans, William N & Kessides, Ioannis N, 1993. "Localized Market Power in the U.S. Airline Industry," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 66-75, February.
    26. Steven A. Morrison, 2001. "Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 239-256, May.
    27. 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.
    28. Calzada, Joan, 2009. "Universal service obligations in the postal sector: The relationship between quality and coverage," Information Economics and Policy, Elsevier, vol. 21(1), pages 10-20, February.
    29. Douglas W. Caves & Laurits R. Christensen & Michael W. Tretheway, 1984. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 471-489, Winter.
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    Citations

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    Cited by:

    1. repec:eee:jaitra:v:66:y:2018:i:c:p:65-75 is not listed on IDEAS
    2. Fageda, Xavier & Jiménez, Juan Luis & Valido, Jorge, 2016. "Does an increase in subsidies lead to changes in air fares? Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 235-242.
    3. Valido, Jorge & Pilar Socorro, M. & Hernández, Aday & Betancor, Ofelia, 2014. "Air transport subsidies for resident passengers when carriers have market power," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 388-399.
    4. Pita, João Pedro & Antunes, António Pais & Barnhart, Cynthia & de Menezes, António Gomes, 2013. "Setting public service obligations in low-demand air transportation networks: Application to the Azores," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 35-48.
    5. Wittman, Michael D. & Allroggen, Florian & Malina, Robert, 2016. "Public service obligations for air transport in the United States and Europe: Connectivity effects and value for money," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 112-128.
    6. Campos, Javier & Jiménez, Juan Luis & Perdiguero, Jordi, 2015. "Contestability and public concern about airfares: A case study in the Canary Islands," Transport Policy, Elsevier, vol. 42(C), pages 180-186.
    7. Núñez-Sánchez, Ramón, 2015. "Regional public support to airlines and airports: An unsolved puzzle," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 93-107.
    8. Fageda, Xavier & Flores-Fillol, Ricardo, 2012. "Air services on thin routes: Regional versus low-cost airlines," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 702-714.
    9. repec:eee:jaitra:v:67:y:2018:i:c:p:1-10 is not listed on IDEAS
    10. repec:eee:transa:v:106:y:2017:i:c:p:288-299 is not listed on IDEAS
    11. Calzada, Joan & Fageda, Xavier, 2014. "Competition and public service obligations in European aviation markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 104-116.
    12. Jorge Valido & M. Pilar Socorro & Aday Hernández & Ofelia Betancor, 2012. "Subsidies for resident passengers in air transport markets," Working Papers 2012-10, FEDEA.

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