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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

Suggested Citation

  • Jan K. Brueckner, 2010. "Schedule Competition Revisited," Journal of Transport Economics and Policy, University of Bath, vol. 44(3), pages 261-285, September.
  • Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:3:p:261-285
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    Citations

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    Cited by:

    1. Kuangnen Cheng & Hui-Ping Chen & Jason Lee, 2015. "Competition behavior in service frequency for U.S. airlines," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 1-16, March.
    2. Brueckner, Jan K. & Luo, Dan, 2014. "Measuring strategic firm interaction in product-quality choices: The case of airline flight frequency," Economics of Transportation, Elsevier, vol. 3(1), pages 102-115.
    3. repec:eee:trapol:v:63:y:2018:i:c:p:165-175 is not listed on IDEAS
    4. Czerny, Achim I. & Zhang, Anming, 2015. "How to mix per-flight and per-passenger based airport charges," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 77-95.
    5. 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.
    6. repec:eee:transb:v:104:y:2017:i:c:p:483-500 is not listed on IDEAS
    7. Ko, Young Dae, 2016. "An airline's management strategies in a competitive air transport market," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 53-61.

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