A Structural Model of Intra-European Union Duopoly Airline Competition

Giovanni Nero

26 citations0/0 files storedJournal of Transport Economics and Policy

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Aviation Industry Analysis and Trends Merger and Competition Analysis Transport and Economic Policies

Abstract

Using a two-countries/two-airlines framework, three different competition scenarios are analysed. These reflect the new EU competition rules. The results suggest that the use of hub-and-spoke networks results in significant welfare gains. In addition, the model shows that cross-border mergers may increase net social welfare.

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References

1989Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry 1984Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ 1993MERGERS AND MARKET POWER -- EVIDENCE FROM THE AIRLINE INDUSTRY.1990Market Conduct in the Airline Industry: An Empirical Investigation 1994Economies of Traffic Density in the Deregulated Airline Industry 1990AIRLINE MERGERS, AIRPORT DOMINANCE, AND MARKET POWER 1992The Evolution of U.S. Airline Competition 2012Flying Off Course

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2008High-Speed Rail & Air Transport Competition: Game Engineering as Tool for Cost-Benefit Analysis

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