Airline Competition and Network Structure

Please use this identifier to cite or link to this item: http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1717

Title:	Airline Competition and Network Structure
Keywords:	Fully-connected networks Hub-and-spoke networks Brand loyalty Fully-served markets Partially-served markets
Description:	This paper characterizes the equilibria in airline networks and their welfare implications in an unregulated environment. Competing airlines may adopt either fully-connected (FC) or hub-and-spoke (HS) network structures; and passengers exhibiting low brand loyalty to their preferred carrier choose an outside option to travel so that markets are partially served by airlines. In this context, carriers adopt hubbing strategies when costs are sufficiently low, and asymmetric equilibria where one carrier chooses a FC strategy and the other chooses a HS strategy may arise. Quite interestingly, flight frequency can become excessive under HS network configurations. I acknowledge financial support from the Spanish Ministry of Education and Science (SEC2002-02506 and BEC2003-01132) and Generalitat de Catalunya (2005SGR00836).
URI:	http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1717
Other Identifiers:	http://hdl.handle.net/10261/1717
Appears in Collections:	Digital Csic

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