Scheduled service versus personal transportation: the role of distance
Xavier Fageda and
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Ricardo Flores-Fillol: Universitat Rovira i Virgili
No XREAP2008-13, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)
This paper analyzes both theoretically and empirically the relationship between distance and frequency of scheduled transportation services. We study the interaction between a monopoly firm providing high-speed scheduled service and personal trans- portation (i.e., car). Most interestingly, the carrier chooses to increase frequency of service on longer routes when competing with personal transportation because provid- ing a higher frequency (at extra cost) it can also charge higher fares that can boost its profits. However, when driving is not a relevant option, frequency of service de- creases for longer flights consistently with prior studies. An empirical application of our analysis to the European airline industry con?rms the predictions of our theoretical model.
Keywords: Short-haul routes; long-haul routes; flight frequency; distance (search for similar items in EconPapers)
JEL-codes: L13 L2 L93 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2008-12, Revised 2008-12
New Economics Papers: this item is included in nep-ure
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http://www.xreap.cat/RePEc/xrp/pdf/XREAP2008-13.pdf First version, 2008 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2008-13.pdf Revised version, 2008 (application/pdf)
Journal Article: Scheduled service versus personal transportation: The role of distance (2010)
Working Paper: Scheduled service versus personal transportation: the role of distance (2009)
Working Paper: Scheduled Service Versus Personal Transportation: The Role of Distance (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:xrp:wpaper:xreap2008-13
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