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A note on optimal airline networks under airport congestion

Xavier Fageda and Ricardo Flores-Fillol ()

Economics Letters, 2015, vol. 128, issue C, 90-94

Abstract: We extend the monopoly case without congestion in Brueckner (2004) by examining network choice in a duopoly where airport congestion can occur. Airlines prefer hub-and-spoke configurations, even if this implies higher congestion costs. Airlines may be inefficiently biased towards hub-and-spoke networks.

Keywords: Airline networks; Network efficiency; Airport congestion (search for similar items in EconPapers)
JEL-codes: L13 L93 R41 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:128:y:2015:i:c:p:90-94

DOI: 10.1016/j.econlet.2015.01.023

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