We investigate a multi-market Cournot model with strategic process research and development (R&D) investments wherein a multi-market firm meets new competitors that enter one of the markets. We show that entry can enhance the total R&D expenditures of the multi-market firm. Moreover, the...

This study examines an airline firm's adoption of a hub-spoke network or a point-to-point network when considering network effects from the demand side and the heterogeneity of passengers' time value. The results of this study reveal the following: If the time value for leisure passengers is...

This paper addresses the problem of hub airport privatization, similar to the studies by Matsumura and Matsushima (2012) and Mantin (2012). However, differentiating from their papers, this paper introduces a domestic airline network. That is, each country has one major hub airport and some local...

type="main" <p>Cross-border consumption has become more popular, prompting a growing interest in the problems related to international trade. At the same time, trans-boundary air pollution has become a major environmental problem, meriting increased attention in environmental economics literature....</p>

The analyses presented herein use the undercut-proof equilibrium, a new equilibrium concept for price competition with product differentiation, to illustrate whether it is socially optimal for an airline to form a network freely. The results show that an excessive network is formed if the...

This paper tests whether it is possible to address the hub location problem using the industrial organization framework. In particular, it focuses on the scheduling effect on the demand side and the number of passengers traveling between each city pair. The study shows that the hub city is not...