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We analyze the phenomenon of hub dominance by developing a model relating faresto distance, using the mainleg of intercontinental flights for scaling purposes. Our results indicate thatat least some of the major Europeancarriers place a mark up on flights originating from or going to their hubs.
Persistent link: https://www.econbiz.de/10011256130
Frequent Flier Programs (FFPs) are said to impact airline consumer behaviour such that revenue of sponsoring airlines increases. Prior research relies on aggregate industry data to study FFPs. We examine the impact of FFPs on individual consumer behaviour in a quasi-natural experimental set-up...
Persistent link: https://www.econbiz.de/10011261937
This paper investigates optimal airport pricing when airlines provide imperfect substitutes products, and make decisions on capacity, scheduling and pricing. We show that the first-best toll per flight may be higher than the simple market-shares formulae that were recently derived for Cournot...
Persistent link: https://www.econbiz.de/10011256199
This paper resulted in a publication in <A HREF="http://www.sciencedirect.com/science/article/pii/S0191261514000939"><I>Transportation Research Part B: Methodological</I></A>, 2014, 67, 320-343.<P> This paper studies whether a regulator needs to correct the route structure choice by carriers with market power in the presence of congestion externalities, in addition to correct their...</p></i></a>
Persistent link: https://www.econbiz.de/10011257085
See also the article <I>Search Costs, Demand-side Economies, and the Incentives to merge under Bertrand Competition … merge in a Bertrand competitionmodel where firms sell differentiated products and consumers search the marketfor … than the outsiders so consumers search forgood deals first at the non-merging stores and then, if they do not find …
Persistent link: https://www.econbiz.de/10011255742
betweenfirms,thereby lowering prices and increasing economic welfare. This paperpresents a search model that provides a different …, but reduce prices when consumers search intensityis high. These different comparative statics results may explain themixed …
Persistent link: https://www.econbiz.de/10011257322
search for a job-type that matches their skill. They face a trade-off between match quality and the cost of extended search …. This trade-off differs between regions, because search is more efficient in larger regions. Then, interregional mobility … and trade lead to a pattern of specialization where large scale regions have a comparative advantage in producing …
Persistent link: https://www.econbiz.de/10011255840
The search literature assumes that consumers know which firms sell products they are looking for, but are unaware of … the basic fact that they sell the product. In this way, advertising lowers the expected search cost. We show that this …
Persistent link: https://www.econbiz.de/10011255691
Network shares and retail prices are not symmetric in the telecommunications market with multiple bottlenecks which give rise to new questions of access fee regulation. In this paper we consider a model with two types of asymmetry arising from different entry timing, i.e. a larger reputation for...
Persistent link: https://www.econbiz.de/10011255994
This discussion paper led to a publication in <A href="http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0297.2009.02334.x/abstract">'The Economic Journal'</A>, 120(549) 1319-44.<P>This paper considers a government auctioning off multiple licenses to firms who compete in a market after the auction. Firms have different costs, and cost efficiency is private information at the auction...</p></a>
Persistent link: https://www.econbiz.de/10011257162