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Airline Schedule Competition : Product-Quality Choice in a Duopoly Model

Author: Jan K Brueckner; Ricardo Flores-Fillol
Publisher: München : CESifo, Center for Economic Studies & Ifo Institute for economic research, 2006.
Series: CESifo working paper series, 1731.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This paper presents a simple model of airline schedule competition that circumvents the complexities of the spatial approach used in earlier papers. Consumers choose between two duopoly carriers, each of which has evenly spaced flights, by comparing the combinations of fare and expected schedule delay that they offer. In contrast to the spatial approach, the particular departure times of individual flights are thus  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Jan K Brueckner; Ricardo Flores-Fillol
OCLC Number: 429460694
Description: 1 online resource (Text.)
Series Title: CESifo working paper series, 1731.
Responsibility: Jan K. Brueckner, Ricardo Flores-Fillol.

Abstract:

This paper presents a simple model of airline schedule competition that circumvents the complexities of the spatial approach used in earlier papers. Consumers choose between two duopoly carriers, each of which has evenly spaced flights, by comparing the combinations of fare and expected schedule delay that they offer. In contrast to the spatial approach, the particular departure times of individual flights are thus not relevant. The model generates a number of useful comparative-static predictions, while welfare analysis shows that equilibrium flight frequencies tend to be inefficiently low.

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