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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/25776
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| Title: | | Airline schedule competition: product-quality choice in a duopoly model  |
| Authors: | | Brueckner, Jan Keith Flores-Fillol, Ricardo |
| Issue Date: | | 2006 |
| Series/Report no.: | | CESifo working paper 1731 |
| Abstract: | | This paper presents a simple model of airline schedule competition that circumvents the complexities of the spatial approach used in earlier papers. Consumers choose between two duopoly carriers, each of which has evenly spaced flights, by comparing the combinations of fare and expected schedule delay that they offer. In contrast to the spatial approach, the particular departure times of individual flights are thus not relevant. The model generates a number of useful comparative-static predictions, while welfare analysis shows that equilibrium flight frequencies tend to be inefficiently low. |
| JEL: | | L0 L9 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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