The purpose of this paper is to analyze the impact of liberal bilateral agreements on some European air routes in terms of price competition and market structure. The author proposes a model that explains firms' behavior and shows that, after the liberalization, firms exploit their cost...

This paper analyzes the effect of multimarket contact on firms' behavior. According to D. Bernheim and M. D. Whinston (1990), firms that meet in several markets for an infinite number of periods may find it profitable to redistribute market power among markets where they are operating. The...