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In this paper, we provide another reason that may explain the adoption of the hub-and-spoke network structure in the airline industry. We show that when an airline has to decide on its capacity before the demand conditions are perfectly known, a hub-and-spoke network structure by pooling...
Persistent link: https://www.econbiz.de/10005796024
We introduce an on-line pricing tactic where airlines post, at the same time and for the same flight, fares in …
Persistent link: https://www.econbiz.de/10005423034
In this paper, we provide another reason that may explain the adoption of the hub-and-spoke network structure in the airline industry. We show that when an airline has to decide on its capacity before the demand conditions are perfectly known, a hub-and-spoke network structure by pooling...
Persistent link: https://www.econbiz.de/10005486979
Dynamic pricing is increasingly popular in the perishable good markets, but its effect under competition is uncertain … intensifies competition and benefits consumers substantially; (ii) the ability to price discriminate softens competition and …
Persistent link: https://www.econbiz.de/10012898558
In this paper we study the impact of competition on the provision of quality in the US airline industry. Using changes … in competition triggered by LCC entry and airline mergers, we find that an increase in competition increases the … provision of quality of major incumbent and non-merging airlines by increasing the number of flights and seats available in a …
Persistent link: https://www.econbiz.de/10013004573
understand how and to what extent CSA distorts market competition among airlines. With an application to Japanese domestic … airlines, structural estimates of our demand and supply models indicate that CSA would significantly lessen market competition … as a vertical contract between airlines, which sometimes co-own the code-shared flights. Our structural model aims to …
Persistent link: https://www.econbiz.de/10014077048
The objective of the paper is to elaborate a simulation model to analyze inter- and intra-modal competition in the … effect of a kerosene tax. Hence our framework could serve as a tool to measure the effectiveness of competition on a relevant … market or to design marketing strategies. More generally it can be applied in cases of oligopolistic competition when …
Persistent link: https://www.econbiz.de/10014067889
competition reduces, airlines apply higher fares as they exploit the greater market power arising from more concentrated market … intramodal competition influences fares charged to travellers. The second is to shed light on fares' intertemporal profile to … verify if airlines undertake intertemporal price discrimination (IPD) strategies and whether IPD is of monopolistic-type or …
Persistent link: https://www.econbiz.de/10013097983
stage 1 airlines determines their network structure (linear versus hub-and-spoke). At stage 2 they decide on their … structure and capacities while facing demand uncertainty. We show that while hubbing is efficient, airlines may choose a linear … network for strategic reasons. Furthermore, we show that this structure softens competition by preventing contagion of …
Persistent link: https://www.econbiz.de/10005510359
stage 1 airlines determines their network structure (linear versus hub-and-spoke). At stage 2 they decide on their … structure and capacities while facing demand uncertainty. We show that while hubbing is efficient, airlines may choose a linear … network for strategic reasons. Furthermore, we show that this structure softens competition by preventing contagion of …
Persistent link: https://www.econbiz.de/10005486991