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Compatibility and Competition in Airlines: Demand Side Network Effect

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  • Encacoua, D.
  • Moreaux, M.
  • Perrot, A.

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  • Encacoua, D. & Moreaux, M. & Perrot, A., 1995. "Compatibility and Competition in Airlines: Demand Side Network Effect," Papiers d'Economie Mathématique et Applications 95.21, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:fth:pariem:95.21
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    References listed on IDEAS

    as
    1. Joseph Farrell & Garth Saloner, 1985. "Standardization, Compatibility, and Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 70-83, Spring.
    2. Bittlingmayer, George, 1990. "Efficiency and entry in a simple airline network," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 245-257, June.
    3. David Encaoua & Philippe Michel & Michel Moreaux, 1992. "Network Compatibility: Joint Adoption Versus Individual Decisions," Annals of Economics and Statistics, GENES, issue 25-26, pages 51-69.
    4. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    5. 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.
    6. Brueckner, Jan K. & Spiller, Pablo T., 1991. "Competition and mergers in airline networks," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 323-342, September.
    7. Anne Perrot, 1993. "Compatibility, Networks, and Competition: A Review of Recent Advances," Transportation Science, INFORMS, vol. 27(1), pages 62-72, February.
    8. Morrison, Steven A & Winston, Clifford, 1990. "The Dynamics of Airline Pricing and Competition," American Economic Review, American Economic Association, vol. 80(2), pages 389-393, May.
    9. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    10. Encaoua, David, 1991. "Liberalizing European airlines : Cost and factor productivity evidence," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 109-124, March.
    11. Borenstein, Severin, 1990. "Airline Mergers, Airport Dominance, and Market Power," American Economic Review, American Economic Association, vol. 80(2), pages 400-404, May.
    12. repec:adr:anecst:y:1992:i:25-26:p:02 is not listed on IDEAS
    13. Farrell, Joseph & Saloner, Garth, 1986. "Installed Base and Compatibility: Innovation, Product Preannouncements, and Predation," American Economic Review, American Economic Association, vol. 76(5), pages 940-955, December.
    14. Reiss, Peter C & Spiller, Pablo T, 1989. "Competition and Entry in Small Airline Markets," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 179-202, October.
    15. Katz, Michael L & Shapiro, Carl, 1986. "Product Compatibility Choice in a Market with Technological Progress," Oxford Economic Papers, Oxford University Press, vol. 38(0), pages 146-165, Suppl. No.
    16. Gregory Dobson & Phillip J. Lederer, 1993. "Airline Scheduling and Routing in a Hub-and-Spoke System," Transportation Science, INFORMS, vol. 27(3), pages 281-297, August.
    17. Carmen Matutes & Pierre Regibeau, 1988. ""Mix and Match": Product Compatibility without Network Externalities," RAND Journal of Economics, The RAND Corporation, vol. 19(2), pages 221-234, Summer.
    18. Encaoua, D. & Moreaux, M. & Perrot, A., 1992. "Demand-Side Network Effect in Airline Markets," Papiers d'Economie Mathématique et Applications 92.28, Université Panthéon-Sorbonne (Paris 1).
    19. repec:adr:anecst:y:1989:i:15-16:p:17 is not listed on IDEAS
    20. Phillip J. Lederer, 1993. "A Competitive Network Design Problem with Pricing," Transportation Science, INFORMS, vol. 27(1), pages 25-38, February.
    21. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    22. Spiller, Pablo T., 1989. "A note on pricing of hub-and-spoke networks," Economics Letters, Elsevier, vol. 30(2), pages 165-169, August.
    23. Steven A. Morrison & Clifford Winston, 1989. "Enhancing the Performance of the Deregulated Air Transportation System," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989 Micr), pages 61-123.
    24. André De Palma & Luc Leruth, 1989. "Congestion and Game in Capacity: a Duopoly Analysis in the Presence of Network Externalities," Annals of Economics and Statistics, GENES, issue 15-16, pages 389-407.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Wang, Chunan & Wang, Xiaoyu, 2019. "Airport congestion delays and airline networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 328-349.
    2. repec:ebl:ecbull:v:12:y:2005:i:4:p:1-11 is not listed on IDEAS
    3. JA. Clougherty, 2000. "US domestic airline alliances: does the national welfare impact turn on strategic international gains?," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 304-314, July.
    4. Jan K. Brueckner & Ricardo Flores-Fillol, 2006. "Airline Schedule Competition: Product-Quality Choice in a Duopoly Model," Working Papers 050629, University of California-Irvine, Department of Economics.
    5. de Palma, André & Ordás Criado, Carlos & Randrianarisoa, Laingo M., 2018. "When Hotelling meets Vickrey. Service timing and spatial asymmetry in the airline industry," Journal of Urban Economics, Elsevier, vol. 105(C), pages 88-106.
    6. Ming Hsin Lin, 2005. "Alliances and entry in a simple airline network," Economics Bulletin, AccessEcon, vol. 12(4), pages 1-11.
    7. Clougherty, Joseph A., 2002. "US domestic airline mergers: the neglected international determinants," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 557-576, April.
    8. Ishii, Ryosuke & Nakagawa, Kuninori, 2011. "An effect of consumer's earlier decision to purchase a discount ticket," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4502, Otaru University of Commerce.
    9. Lin, Ming Hsin, 2012. "Airlines-within-airlines strategies and existence of low-cost carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 637-651.
    10. Barla, Philippe, 1999. "Demand Uncertainty and Airline Network Morphology with Strategic Interactions," Cahiers de recherche 9907, Université Laval - Département d'économique.
    11. Hattori Keisuke & Lin Ming-Hsin, 2011. "Alliance Partner Choice in Markets with Vertical and Horizontal Externalities," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-27, June.
    12. Wang, Chunan & Wang, Xiaoyu, 2019. "Why do airlines prefer multi-hub networks?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 56-74.
    13. Christopher Mayer & Todd Sinai, "undated". "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why All Delays Are Not Evil," Zell/Lurie Center Working Papers 393, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
    14. Tsuyoshi Toshimitsu, 2019. "Analysis of Merger Control in a Network Products Market," Manchester School, University of Manchester, vol. 87(5), pages 678-693, September.
    15. Doi, Naoshi, 2014. "Mutual influence across routes using a common airport: The case of the domestic market in Japan," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 132-136.
    16. Flores-Fillol, Ricardo, 2010. "Congested hubs," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 358-370, March.
    17. Yimga, Jules, 2017. "Airline on-time performance and its effects on consumer choice behavior," Research in Transportation Economics, Elsevier, vol. 66(C), pages 12-25.
    18. Lazzarini, Sergio G., 2002. "The Performance Implications of Membership in Competing Firm Constellations: Evidence from the Global Airline Industry," Insper Working Papers wpe_23, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    19. Christopher Mayer & Todd Sinai, 2003. "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil," American Economic Review, American Economic Association, vol. 93(4), pages 1194-1215, September.
    20. Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(3), pages 161-177, May.

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    More about this item

    Keywords

    COMPETITION; TRANSPORT; DEMAND;
    All these keywords.

    JEL classification:

    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L99 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Other

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