Compatibility and competition on airlines: demand side network effects

Article Abstract:

Network effects from the demand side affect the price and flight-schedules competition between airlines that have the same route. The nearer to compatibility the departure schedules are, the more intense price competition becomes. Both seek to affect consumer choice. The airline with the smaller network is at a disadvantage and is therefore the one more active in seeking flight schedule compatibility, while the airline with the greater advantage because of a bigger network tries to avoid it.

Scheduled Airlines, Scheduled Air Transportation, Air Transportation, Scheduled, And Air Courier Services, Competition (Economics), Airlines, Market share, Regional airlines, Local service airlines, Demand (Economics)

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Preemption and rent dissipation under price competition

Article Abstract:

A simple duopoly model of preemption with multiple investments and instantaneous price competition on a market of finite size is studied. Depending on the importance of the real option effect, different patterns of equilibria may arise.

Science & research, Research, Equilibrium (Economics), Duopolies

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Entry preventing locations under incomplete information

Article Abstract:

The location can serve as a signal, which deters or accommodates entry when there is asymmetric cost information. The analysis shows that location may allow or prevent the entrant from inferring the incumbent's cost advantage.

Cost benefit analysis, Asynchronous communications, Asynchronous transfer mode, ATM

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