LIN Minghsin
Department
Osaka University of Economics
Department of Economics, Faculty of Economics
Position
Professor
|
| Language | English |
| Publication Date | 2015 |
| Type | |
| Peer Review | Peer reviewed |
| Title | Airline Network Competition with New Brand Subsidiaries |
| Contribution Type | |
| Journal | Journal of Transport Economics and Policy |
| Journal Type | Another Country |
| Publisher | London School of Economics and University of Bath |
| Volume, Issue, Page | 49(1),pp.58-78 |
| Details | This paper investigates airline network competition where two (identical) hub carriers aim to establish new subsidiaries offering differentiated non-stop services on their rim-routes. Each of them may retain a hub or shift to a mix (or point-to-point) network cooperating with its subsidiary. We find that each chooses a mix (hub) network when passengers' product differentiation is large (small). We also find that one carrier chooses a hub and the other chooses a mix network when the differentiation is intermediate. Our welfare analysis shows that each network pair competition worsens welfare compared with a monopoly hub or mix network. |
