Brueckner, Jan K. Czerny, Achim I. Gaggero, Alberto A.
Year of Publication:
CESifo Working Paper No. 8545
Center for Economic Studies and Ifo Institute (CESifo), Munich
This paper revisits the airline schedule-buffer choice problem analyzed by Brueckner, Czerny and Gaggero (2020) using a simpler model where the random shocks influencing flight times are discrete rather than continuous. The analysis yields closed-form solutions for the flight and ground buffers as well as full comparative-static results, neither of which were available in the earlier paper. The paper also explores several extensions to the model that were not present in the previous paper