Utilizad este identificador para citar o enlazar este documento: http://hdl.handle.net/2072/12978

Scheduled service versus personal transportation: the role of distance
Bilotkach, Volodymyr; Fageda, Xavier; Flores-Fillol, Ricardo
Xarxa de Referència en Economia Aplicada (XREAP)
This paper analyzes both theoretically and empirically the relationship between distance and frequency of scheduled transportation services. We study the interaction between a monopoly firm providing high-speed scheduled service and personal trans- portation (i.e., car). Most interestingly, the carrier chooses to increase frequency of service on longer routes when competing with personal transportation because provid- ing a higher frequency (at extra cost) it can also charge higher fares that can boost its profits. However, when driving is not a relevant option, frequency of service de- creases for longer flights consistently with prior studies. An empirical application of our analysis to the European airline industry con?rms the predictions of our theoretical model.
2008
33 - Economia
Economia del transport
Transport aeri
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45 p.
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XREAP;2008-13
         

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