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Airline Networks as Joint Goods: Implications for Competition Policy

Andrew N Kleit and Stewart G Maynes

Journal of Regulatory Economics, 1992, vol. 4, issue 2, 175-86

Abstract: This article derives a model of airline services as joint goods. Using this model, the article shows how the existence of higher fares in certain "hub" routes may imply the market has generated a solution to the problem of covering joint costs by having a larger proportion of those costs come from hub routes, rather than the existence of any general market failure. The model is then used to make recommendations for competition policy. Copyright 1992 by Kluwer Academic Publishers

Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:kap:regeco:v:4:y:1992:i:2:p:175-86

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