The purpose of our paper is to generalize the model by Arnott et al. (1990a) to situations with a single origin and destination connected by two routes and to test the analytical results in an experiment with discrete time departure choices. The experimental evidence does not support the...

In this paper, I model competition between legal and pirate products. In this framework, the government affects competition through police spending and taxes on the legal products. Therefore, the government can choose the optimal combination of spending and taxes that fit better its goals. I...

Static demand models for homogeneous network goods give rise to fulfilled-expectations equilibrium demand (FEED) curves, which, contrary to normal demand curves, may be upward sloping at certain intervals. We analyze some, as yet unexplored, properties of the FEED curves. We spell out the...

Wireless operators often outsource the task of creating content to independent content providers in the mobile Internet market. Revenue streams of the mobile Internet market typically consist of two main sources, data traffic and content sales. It is often the case that only the revenue from...

This paper is an exploratory study on the interconnection economics of All-IP networks. To understand the economics of the yet-to-be-realized All-IP networks, this paper begins with discussing three important features of current IP networks: packet switching, receiver benefit, and two-sidedness....

This paper examines the evolution of airline business models and network structure decisions in the passenger aviation industry. The paper reviews the growth of hub-and-spoke networks as the dominant business model following deregulation in the latter part of the 20th century, followed by the...

With airport privatization and infrastructure expansion projects taking place in the liberalized European air transport market, airport and airline companies are critically reevaluating their vertical governance structures. This paper analyzes the comparative efficiency of vertical governance...

This paper seeks to review the airport-airline relationship in the light of the growth in the low cost sector, identifying important issues that airport management should consider when negotiating with low cost airlines. Airports have responded to the potential opportunities that have arisen...

Ongoing consolidation in the European airline industry poses a threat to second-tier hub cities in terms of losing hub status and long haul routes. As airlines merged in the USA, it was often more efficient to close a duplicating hub and concentrate resources on the stronger one. This paper...

There is no academic consensus on which electricity market design provides the least distorting investment incentives. Theory suggests that "energy-only markets" can allow capacity cost recovery by generators. However, separate payments for capacity or reserve obligations do not need to rely on...