The market developments in international air transportation have led to the dominance of three global airline alliances - Star, SkyTeam and oneworld. At the same time, members of these alliances receive increasingly more freedom in coordinating various aspects of joint operations, including...

type="main" <title type="main">ABSTRACT</title> <p>This paper studies effects of price floors in a simple model of vertical product differentiation. We find that even non-binding price floor (i.e., minimum price set below the lowest Nash equilibrium price in the baseline model) can increase quality on the market, if the cost...</p>

The paper discusses selected antitrust implications of airline alliances. In addition to a categorization of airline alliances and a brief discussion of their key competitive effects, our focus is on an assessment of efficiencies triggered by various degrees of airline cooperation. We find that...

This paper analyzes both theoretically and empirically the relationship between distance and frequency of scheduled transportation services. We study the interaction between a monopoly firm providing high-speed scheduled service and personal trans- portation (i.e., car). Most interestingly, the...

A case of multiproduct duopoly is considered with a different number of products produced by each firm. Given logit and nested logit substitutability patterns, it is shown that a firm offering more products charges higher price in equilibrium.

As low-cost airlines or carriers excluded from international markets by regulation may seek to expand internationally in an indirect way through code-sharing agreements, they can choose partner airlines from among domestic or international carriers. The former case results in a...

International airline markets have the rather unusual feature of partial deregulation with asymmetric regulatory constraints: Some carriers face entry restrictions different from others for a given route. Like domestic air travel, international travel also features hubs, where a single carrier...

We examine the issue of market foreclosure by airline partnerships with antitrust immunity. Overlapping data on frequency of service and passenger volumes on non-stop transatlantic routes with information on the dynamics of airline partnerships, we find evidence consistent with the airlines...