This paper estimates a model of airline competition that captures the two major features of the industry: product differentiation and economies of density. The results not only provide support to some of the traditional common wisdom in the industry, but are also useful for understanding major puzzles concerning the evolution of the industry. The estimates indicate that a hubbing airline's ability to raise prices is focused on tickets that appeal to price-inelastic business travelers, who favor the origin-hub airline, even while paying an average premium of 20%. These high prices do not, however, provide a `monopoly umbrella' to other non-hub airlines. Finally, on the cost side there is evidence of economies of density (and therefore cost economies of hubbing) on longer routes. Consistent with the `Southwest Airlines' effect, there is no evidence of economies of density on shorter routes


    Zugriff

    Download


    Exportieren, teilen und zitieren



    Titel :

    Airline Hubs : Costs, Markups and the Implications of Customer Heterogeneity



    Erschienen in:

    Erscheinungsdatum :

    1996


    Format / Umfang :

    1 Online-Ressource


    Anmerkungen:

    Campusweiter Zugriff (Universität Hannover) - Vervielfältigungen (z.B. Kopien, Downloads) sind nur von einzelnen Kapiteln oder Seiten und nur zum eigenen wissenschaftlichen Gebrauch erlaubt. Keine Weitergabe an Dritte. Kein systematisches Downloaden durch Robots.



    Medientyp :

    Buch


    Format :

    Elektronische Ressource


    Sprache :

    Englisch



    An Analysis of Fortress Hubs in Airline Networks

    Zhang, Anming | Online Contents | 1996


    Existing and new evidence on the effects of airline hubs

    Schnell, M. C. A. / Huschelrath, K. | British Library Online Contents | 2004


    Virtual hubs : an airline schedule recovery concept and model.
    Airline schedule recovery concept and model

    Karow, Michelle J. (Michael Janine), 1979- | DSpace@MIT | 2003

    Freier Zugriff


    Sequestration takes back seat in bill markups

    Bruno, Michael | Online Contents | 2013