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...

We examine two factors that might explain the extent of air traffic delays in the United States: network benefits due to hubbing and congestion externalities. Airline hubs enable passengers to cross-connect to many destinations, thus creating network benefits that increase in the number of...

Market Research: Overcoming Incomplete, Inconsistent, or Outdated Data -- Network Structures Follow Network Strategies -- Designing Connectivity-Driven Network and Hub Structures -- Designing Asset-Productive Networks -- Case Studies -- Planning and Controlling Networks: Networking Higher Math,...

This paper analyzes the relative economic power position of home carriers in hub-and-spoke systems. Hub-and-spoke systems may lower costs on densely traveled routes and enable economically viable operations on less densely traveled routes. The reverse side is probably that carriers enjoy...

This paper explores the possibility that the fortress hubs phenomenon is a consequence of the nature of airline hub-spoke network rivalry with the cost complementarities and economies of traffic density inherent to such networks. A negative network effect of local competition is identified:...

The domestic airline merger phenomenon of the late 1980s and early 1990s sparked a great deal of Industrial Organization (IO) literature; yet, that literature neglected non-US domestic mergers and potential for international competitive gains. Using an International Business perspective to...