Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25776 
Year of Publication: 
2006
Series/Report no.: 
CESifo Working Paper No. 1731
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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
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