This paper analyzes third-degree price discrimination of a monopoly airline in the presence of congestion externality …

high-speed rail (HSR) competition on airlines. An analytical model is developed to study how an airline may change its … network and market coverage when facing HSR competition on trunk routes. We show that prior to HSR competition, an airline is … competition, the airline will, for a given network structure, have a greater incentive to cover more fringe (regional or foreign …