Airport and airline competition in a multirple airport region: an analysis based on the nested logit model

摘要

In a multiple airport region airlines compete with both other airlines operating from the same airport and airlines operating from alternative airports. In this paper symmetric equilibrium airfares and frequencies are derived for airlines operating from the same airports and for airlines operating from different airports. These equlibria are shown to be unique. Next, airport authorities are introduced as independent agents and equailibrium airport taxes, airfaces and frequencies are derived and shown to be unique. SOme simplifying assumptions are neccessary to be able to devie these equilibria. We comment on the possibilities of relaxing these assumptions.