A note on optimal airline networks under airport congestion

We extend the monopoly case without congestion in Brueckner (2004) by examining network choice in a duopoly where airport congestion can occur. Airlines prefer hub-and-spoke configurations, even if this implies higher congestion costs. Airlines may be inefficiently biased towards hub-and-spoke networks.

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Year of publication:	2015
Authors:	Fageda, Xavier ; Flores-Fillol, Ricardo
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 128.2015, C, p. 90-94
Publisher:	Elsevier
Subject:	Airline networks \| Network efficiency \| Airport congestion

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Type of publication:	Article
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L93 - Air Transportation ; R41 - Transportation: Demand; Supply; Congestion; Safety and Accidents
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011208466