A dynamic game of airline network competition: Hub-and-spoke networks and entry deterrence
نویسندگان
چکیده
منابع مشابه
Network Competition and Entry Deterrence*
We develop a model of logit demand that extends the traditional duopoly framework of network competition to a multi-firm industry. First, we show that incumbents establish the reciprocal access charge inefficiently below cost when they compete in prices but they behave efficiently if they compete in utilities. Secondly, we study how incumbents determine the industry-wide access charge under the...
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The disparity between the relative success of low-cost and network carriers since 2001 has often been attributed to the difference in route system architecture. This paper compares the economic and operational characteristics of point-to-point and hub-and-spoke route systems. It also argues that the emphasis placed on route structure obscures other differences in business models. Although U.S. ...
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The hub-and-spoke distribution paradigm has been a fundamental principle in geographic network design for more than 40 years. One of the primary advantages that such networks possess is their ability to exploit economies of scale in transportation by aggregating network flows through common sources. In this paper, we consider the problem of designing an optimal hub-and-spoke network in continuo...
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The existing works considering the flow-based discount factor in the hub and spoke problems, assume that increasing the amount of flow passing through each edge of network continuously decreases the unit flow transportation cost. Although a higher volume of flow allows for using wider links and consequently cheaper transportation, but the unit of flow enjoys more discounts, quite like replacing...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 2010
ISSN: 0167-7187
DOI: 10.1016/j.ijindorg.2010.03.003