Economics at your fingertips  

Effects of Southwest Airlines' entry and airport dominance

Ryota Asahi and Hideki Murakami

Journal of Air Transport Management, 2017, vol. 64, issue PA, 86-90

Abstract: We empirically analyzed the pricing behavior of Southwest Airlines and its rivals in markets into which Southwest Airlines had newly entered. We used simultaneous demand and price equations using US airline industry data for the fourth quarters of 2003–2010. Our results produced two important findings. First, Southwest Airlines may set flexible prices while enjoying own airport dominant power after its entry. Second, Southwest Airlines' rivals set competitive prices after it entered their markets, but they set more competitive prices beginning in the fourth year after Southwest Airlines’ entry on routes through airports where Southwest Airlines was not a dominant power.

Keywords: US airline industry; LCC; Southwest Airlines; Entry; Airport dominance (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-10-28
Handle: RePEc:eee:jaitra:v:64:y:2017:i:pa:p:86-90