Capacity Trade-O¤s & Trading Capacity
نویسندگان
چکیده
Accounting for desire for variety within the consumer demand function, a two stage hybrid competitive-cooperative game analyzes di¤erentiated oligopolies under varying market structures from competition through pooling contracts up to anti-trust immune alliances. From a managerial perspective, pooling agreements not only bene t rms by better matching supply and demand but also rank highest in consumer surplus and social welfare, of interest to regulators. Moreover (partial) mergers appear preferable to no agreement on thinmarkets, de ned as relatively low demand with weak initial pro t margins. A numerical analysis of the airline industry demonstrates under asymmetric and uncertain demand that codesharing on parallel links is preferable to competitive outcomes for multiple consumer types. Keywords: agreements among rms, variety, pooling agreements, anti-trust regulation
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