Brueckner, Jan K.; Dyer, Nichola J.; Spiller, Pablo T. - In: RAND Journal of Economics 23 (1992) 3, pp. 309-333
This article provides the first evidence linking airfares to the structure of airline hub-and-spoke networks. The hypothesis tested is that any force that increases traffic volume on the spokes of a network will reduce fares in the markets it serves. This effect arises because of economies of...