Aguirregabiria, Victor; Ho, Chun-Yu - In: International Journal of Industrial Organization 28 (2010) 4, pp. 377-382
In a hub-and-spoke network, the profit function of an airline is supermodular with respect to the airline's own entry decisions for different city-pairs. This source of complementarity implies that a hub-and-spoke network can be an effective strategy for deterring the entry of competitors. This...