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Pels, Eric
Nijkamp, Peter
Rietveld, Piet
Year of Publication: 
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 98-073/3
Tinbergen Institute, Amsterdam and Rotterdam
In this paper a model, based on the nested multinomial logit model, is used to analyze airport competition and airline competition in a multiple airport region. It is shown that if the frequency elasticity of demand is smaller than 1, airfare-frequency and airport tax equilibria exist and are unique.Symmetric equilibria are derived analytically and their properties are discussed. Asymmetric equilibria are obtained numerically, and their properties are discussed.
Document Type: 
Working Paper

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