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

Jan K. Brueckner () and Flores-Fillol, Ricardo ()
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Flores-Fillol, Ricardo: Departament d’Economia i d’Historia Economica, Universitat Autonoma de Barcelona

No 50629, Working Papers from University of California-Irvine, Department of Economics

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.

New Economics Papers: this item is included in nep-com, nep-ind, nep-mkt and nep-ure
Date: 2006-04
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http://www.economics.uci.edu/docs/2005-06/Brueckner-29.pdf (application/pdf)

Related works:
Working Paper: Airline Schedule Competition: Product-Quality Choice in a Duopoly Model (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:irv:wpaper:050629

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