Caves, Douglas W.; Christensen, Laurits R.; Tretheway, … - In: RAND Journal of Economics 15 (1984) 4, pp. 471-489
There has been a perception that U.S. trunk airlines had an inherent cost advantage over smaller regional airlines because of economies of scale. We have formulated a general model of airline costs, which we estimate by using panel data on large and small airlines. Differences in scale are shown...