(6) Success and Failure of Airline Network Structure Caused by Airline Competition

摘要

This paper investigates the airline network structure caused by airline competition. We build an economic model in which two airlines set their flight routes in addition to their prices and flight frequencies respectively. We show that two kinds of airline network structures generate, which depends on consumers' response to airport congestion. In addition, we show that these airline network structures have undesirable circumstances in terms of consumer surplus.