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Airline Competition and Network Structure

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dc.creator Flores Fillol, Ricardo
dc.date 2007-10-30T14:58:01Z
dc.date 2007-10-30T14:58:01Z
dc.date 2007-03
dc.date.accessioned 2017-01-31T00:57:46Z
dc.date.available 2017-01-31T00:57:46Z
dc.identifier http://hdl.handle.net/10261/1717
dc.identifier.uri http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1717
dc.description This paper characterizes the equilibria in airline networks and their welfare implications in an unregulated environment. Competing airlines may adopt either fully-connected (FC) or hub-and-spoke (HS) network structures; and passengers exhibiting low brand loyalty to their preferred carrier choose an outside option to travel so that markets are partially served by airlines. In this context, carriers adopt hubbing strategies when costs are sufficiently low, and asymmetric equilibria where one carrier chooses a FC strategy and the other chooses a HS strategy may arise. Quite interestingly, flight frequency can become excessive under HS network configurations.
dc.description I acknowledge financial support from the Spanish Ministry of Education and Science (SEC2002-02506 and BEC2003-01132) and Generalitat de Catalunya (2005SGR00836).
dc.language eng
dc.relation UFAE and IAE Working Papers
dc.relation 683.07
dc.rights openAccess
dc.subject Fully-connected networks
dc.subject Hub-and-spoke networks
dc.subject Brand loyalty
dc.subject Fully-served markets
dc.subject Partially-served markets
dc.title Airline Competition and Network Structure
dc.type Documento de trabajo


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