This paper investigates the response of full service carriers (FSCs) to theentry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British...

This paper investigates the response of full service carriers (FSCs) to the entry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some of which include low-cost players. Using data on published airfares of Lufthansa, British...

Untersucht wird die Entstehung und anschließende Entwicklung der Low-Cost Carrier (LCC) auf der Ebene einer explorativen Analyse im europäischen Luftverkehrsmarkt. Folgende Aspekte stehen hierbei im Mittelpunkt der Betrachtung: (1) Marktstruktur und Marktentwicklung (2) existierende...

Air transport networks have exhibited a trend towards complex dynamics in recent years. Using Lufthansa’s networks as an example, this paper aims to illustrate the relevance of various network indicators - such as connectivity and concentration - for the empirical analysis of airline network...

Are price-matching guarantees anticompetitive? This paper examines the incentives for price-matching guarantees in markets where information about prices is costly. Under some conditions the conventional explanation of price-matching announcements as facilitating collusion finds support, and is...

Many retailers offer a price-matching guarantee that promises to pay consumers the difference if they find a lower price elsewhere. This article proposes that the effectiveness of a price-matching guarantee as a signal of low store prices depends on individuals' beliefs about the degree to which...

There is a large literature on the impact of price-matching and price-beating guarantees (low-price guarantees) on competition. Existing studies typically employ static models and the results are sensitive to modeling assumptions such as the type of guarantees, consumer hassle costs and consumer...