Patterns and effects of entry in US airline markets

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URL:	https://ub-madoc.bib.uni-mannheim.de/29759
Additional URL:	http://www.zew.de/de/publikationen/publikation.php...
URN:	urn:nbn:de:bsz:180-madoc-297591
Document Type:	Working paper
Year of publication:	2011
The title of a journal, publication series:	ZEW Discussion Papers
Volume:	11-059
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: L40 , L93,
Subject headings (SWD):	USA , Luftverkehrsgesellschaft , Personenverkehr , Deregulierung , Markteintritt , Linienluftverkehr , Niedrigpreispolitik
Keywords (English):	Airline industry , liberalisation , entry , low-cost carriers
Abstract:	We use T-100 traffic data and DB1B fare data from the U.S. Department of Transportation to identify patterns and effects of entry by network carriers and low-cost carriers in non-stop U.S. airline markets. For the sample period from 1996 to 2009, we find that entry activity of low-cost carriers did not only experience significant absolute increases but also led to substantial fare reductions. As route entries by network carriers do not have comparable effects, the existence and expansion of low-cost carriers must be considered as the main driver of competition in the domestic U.S. airline industry.

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BASE: Hüschelrath, Kai ; Müller, Kathrin

Google Scholar: Hüschelrath, Kai ; Müller, Kathrin

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