IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Deregulation and Schedule Competition in Simple Airline Networks

  • Youdi Schipper

    ()

  • Piet Rietveld

    ()

  • Peter Nijkamp

    ()

The present paper investigates the choice of route network, frequencies and ticket prices in air transport networks served by oligopolists. The paper describes these choices in a simple airline network by means of a simulation model. Airline competition is modeled as a 2 stage game: airlines first choose a particular flight schedule in a network, and in the second stage, airlines choose ticket prices. This simulation model thus describes airline profit maximizing behaviour in a given network environment. The model may now serve as a basis to address particular policy related questions. One such question is the welfare effect of airline deregulation. The welfare consequences resulting from the deregulation of airline markets have been investigated quite amply, both theoretically and empirically. In most cases, deregulation has been demonstrated to confer substantial benefits to consumers, and in some cases also to producers. At the same time, however, the external costs associated with aviation have become a major public policy concern in many countries. External effects - which in this case include noise, emissions and congestion - arise when markets lack: resources like peace and quiet, clean air and space are often unpriced. As a result, these resources are used in quantities beyond a social optimum. In the context of airline deregulation, it is now interesting to analyze the welfare effects caused the process of airline deregulation, taking the external costs of aviation into account. The present paper addresses this question while the network character of air transportation is taken into account.

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.

File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa98/papers/205.pdf
Download Restriction: no

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa98p205.

as
in new window

Length:
Date of creation: Aug 1998
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa98p205
Contact details of provider: Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Martin J Osborne & Ariel Rubinstein, 2009. "A Course in Game Theory," Levine's Bibliography 814577000000000225, UCLA Department of Economics.
  2. 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.
  3. Norman, Victor D & Strandenes, Siri Pettersen, 1990. "Deregulation of Scandinavian Airlines: A Case Study of the Oslo-Stockholm Route," CEPR Discussion Papers 403, C.E.P.R. Discussion Papers.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa98p205. 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: (Gunther Maier)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.