Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80174
Authors: 
Ito, Harumi
Lee, Darin
Year of Publication: 
2003
Series/Report no.: 
Working Paper, Brown University, Department of Economics 2003-22
Abstract: 
This paper analyzes the responses of incumbent hub-and-spoke carriers to low cost carrier (LCC) entry on routes served to and from their hubs over the past decade. Our analysis finds that the typical price and capacity response by incumbent hub-and-spoke carriers to LCC entry has been fairly accommodating. Moreover, our analysis also finds-somewhat surprisingly-that the likelihood of an LCC's entry into a hub market being successful is unrelated to the relative response of the incumbent. – Airlines ; Entry ; Exit ; Accommodation ; Predation
JEL: 
L11
L93
Document Type: 
Working Paper

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