The paper specifies and estimates a production function for the airline industry, identifying firms' network characteristics and efficiency as the main determinants of their productivity. The application of this analysis to the European market shows that productivity differences among flag...

The purpose of this paper is to analyze the impact of liberal bilateral agreements on some European air routes in terms of price competition and market structure. The author proposes a model that explains firms' behavior and shows that, after the liberalization, firms exploit their cost...

We study the effect of liberalization on costs and competition in the European airline industry. We construct and estimate a model that includes demand, capacity, and cost equations. The latter accounts for inefficiency and cost-reducing effort. We show that failure to account for the choice of...

This paper analyzes the effect of multimarket contact on firms' behavior. According to D. Bernheim and M. D. Whinston (1990), firms that meet in several markets for an infinite number of periods may find it profitable to redistribute market power among markets where they are operating. The...