Autore
Nero, Giovanni

Titolo
A structural model of intra-European airline competition
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1994 - Fascicolo: 14 - Pagina iniziale: 1 - Pagina finale: 40

This paper presents a structural model of intra-European airline competition. Using a two countries/two airlines (flag-carriers) framework, three different competitive scenarios are analysed. These scenarios reflect the new E C competition rules. The results suggest that, when flag-carriers operate hub-and-spoke networks, the potential welfare gains arising with the abandoning of collusive practices are significant throughout the network. In addition, the model shows that, with increasing returns to density, a crossborder merger between two flag-carriers m ay increase the net social welfare throughout the network. Consequently, the threat of m onopolisation through merger should not be of primary concern to E C antitrust authorities.



Testo completo: http://hdl.handle.net/1814/494

Esportazione dati in Refworks (solo per utenti abilitati)