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route network expansion of low-cost airlines to identify routes where the probability of future entry increase dramatically … entry occurs. Overall, the main findings suggest that airlines respond to entry threats trading off the benefits of short …
Persistent link: https://www.econbiz.de/10010412667
We investigate whether legacy U.S. airlines communicated via earnings calls to coordinate with other legacy airlines in … among airlines about their capacity choices. Estimates from our preferred specification show that when all legacy airlines … reduction materializes only when airlines communicate concurrently, and that it cannot be explained by other possibilities …
Persistent link: https://www.econbiz.de/10012171806
degree of competition on the route and airport. We control for weather, congestion, date, and characteristics of the airport … delay occurrence. Hence, larger airlines seem to offer a higher quality in terms of delays. We also find that an origin … airport with less competition may lead to more delays. Surprisingly, a less competitive route may reduce delays. …
Persistent link: https://www.econbiz.de/10011739415
airlines, the merger is less detrimental to the frequency, possibly because the merger removes serial marginalization in the … mergers depend on a lagged variable measuring the current market structure. On routes with stronger competition, mergers … decrease the frequency more, possibly due to a larger effect on the market structure. When the merging airlines control all the …
Persistent link: https://www.econbiz.de/10011715887
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/10011303861
changed both, the airlines' frequencies and the market shares. Our results show that it has reduced on average the number of …
Persistent link: https://www.econbiz.de/10011548762
Changes in the extent of multi-market contact (MMC) between firms often affect market outcomes – quantities and prices. We show that a strategic but purely competitive effect of changes in MMC can change the quantity provided in a market by a firm by as much as 50%, and the prices a firm sets...
Persistent link: https://www.econbiz.de/10009699389
frequency, passenger connecting costs, airline endogenous hub location and route structure strategic competition. We find that …
Persistent link: https://www.econbiz.de/10010225784
dispersion increases with competition. We find that competition has a negative effect on price dispersion, in line with the … traditional textbook treatment of price discrimination. Specifically, the effects of competition on price dispersion are most … routes with a more homogeneous customer base, the effects of competition on price discrimination are largely insignificant …
Persistent link: https://www.econbiz.de/10003715737
We posit and empirically test the hypothesis that airlines are able to charge a fare premium in markets that originate … demonstrate that airlines have substantial domestic market power, enabling them to raise fares at their domestic airports … determinant of the degree of market power that airlines can exert in the international airline industry. …
Persistent link: https://www.econbiz.de/10011583706