Autore
Nero, Giovanni

Titolo
Spatial multiproduct pricing: empirical on intra-European duopoly airline markets
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1995 - Fascicolo: 42 - Pagina iniziale: 1 - Pagina finale: 29

This paper estimates a model of spatial multiproduct duopoly pricing when the location patterns differ across markets. The theoretical model suggests that a neighbouring location pattern yields less competitive Nash prices than an interlaced location pattern. I apply this model to data for intra-European duopoly airline markets. The empirical results support the theoretical model since I find that fares are higher on intra-European markets which exhibit a neighbouring location pattern in the time domain: In accordance with intuition, price competition is reduced when each airline operates on a specific segment of the timetable (e.g., the first 12 hours of the day). This result has several implications for policy makers and/or airport authorities in charge of awarding slots.



Testo completo: http://hdl.handle.net/1814/567

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