Efficiency and stability of an open sky network

Katsuhiro Yamaguchi, Masashi Yamamoto and Yuichiro Yoshida
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Masashi Yamamoto: Global Security Research Institute, Keio University

No 07-14, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: North America, Europe, and Asia are three largest regional blocks in the global aviation. EU has liberalized its aviation market within the region, following the north America. However, Asia is still left behind, and most of the markets in the region are governed by bilateral air service agreements. This paper shows that, any pair of countries with an exclusive bilateral air-service agreement has no incentive to open their market to the third country; and yet that a comprehensive multilateral air service agreement within the entire region improves the welfare of all countries in the region.

Keywords: air transport market; air-service agreements; social network analysis (search for similar items in EconPapers)
Pages: 18 pages
Date: 2008-02
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Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:07-14

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