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International airline markets have the rather unusual feature of partial deregulation with asymmetric regulatory constraints: Some carriers face entry restrictions different from others for a given route. Like domestic air travel, international travel also features hubs, where a single carrier...
Persistent link: https://www.econbiz.de/10005436144
The paper discusses selected antitrust implications of airline alliances. In addition to a categorization of airline alliances and a brief discussion of their key competitive effects, our focus is on an assessment of efficiencies triggered by various degrees of airline cooperation. We find that...
Persistent link: https://www.econbiz.de/10011162669
Traditional theories of airline pricing maintain that fares monotonically increase as fewer seats remain available on a flight. A fortiori, this implies a monotonically increasing temporal profile of fares. In this paper, we exploit the presence of drops in offered fares over time as an...
Persistent link: https://www.econbiz.de/10010819894
Several airline consolidation events have recently been completed both in Europe and in the United States. The model we develop considers two airlines operating hub-and-spoke networks, using different hubs to connect the same spoke airports. We assume the airlines to be vertically...
Persistent link: https://www.econbiz.de/10010730153
We document and analyze events that followed bankruptcy of Malév Hungarian Airlines on February 3, 2012. Most of the new services post-bankruptcy came from low-cost point-to-point carriers. Flight frequency offered by such carriers is lower than what was offered by the network airline. Yet,...
Persistent link: https://www.econbiz.de/10010776792
Persistent link: https://www.econbiz.de/10010866809
We examine the issue of market foreclosure by airline partnerships with antitrust immunity. Overlapping data on frequency of service and passenger volumes on non-stop transatlantic routes with information on the dynamics of airline partnerships, we find evidence consistent with the airlines...
Persistent link: https://www.econbiz.de/10010985668
type="main" <title type="main">ABSTRACT</title> <p>This paper studies effects of price floors in a simple model of vertical product differentiation. We find that even non-binding price floor (i.e., minimum price set below the lowest Nash equilibrium price in the baseline model) can increase quality on the market, if the cost...</p>
Persistent link: https://www.econbiz.de/10011036298
We examine the issue of market foreclosure by airline partnerships with antitrust immunity. Overlapping data on frequency of service and passenger volumes on nonstop transatlantic routes with information on the dynamics of airline partnerships, we find evidence consistent with the airlines...
Persistent link: https://www.econbiz.de/10011009972
Persistent link: https://www.econbiz.de/10011005941