Policy of airline competition ~monopoly or duopoly~

Yu Morimoto and Kohei Takeda

MPRA Paper from University Library of Munich, Germany

Abstract: We show that monopoly is better than competition in term of social welfare for low frequency routes. Competition affects both flight schedules and airfares. Flight schedules get un-even interval by competition and this leads to large scheduling delay cost (SDC). The increment of SDC is large when the number of flights is small. For low frequency routes, the increment of SDC by competition overwhelms the decreasing in the airfare, so monopoly is better than competition.

Keywords: Scheduling Delay Cost; Airline Competition; Scheduling (search for similar items in EconPapers)
JEL-codes: R41 (search for similar items in EconPapers)
Date: 2015-03-26
New Economics Papers: this item is included in nep-com, nep-ind, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/63258/2/MPRA_paper_63258.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:63258

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().