Title:
|
Scheduled Service Versus Personal Transportation: The Role of Distance
|
Author:
|
Bilotkach, Volodymyr; Fageda, Xavier; Flores-Fillol, Ricardo
|
Other authors:
|
Universitat Rovira i Virgili. Departament d'Economia |
Resum:
|
This paper presents a theoretical and empirical analysis of the relationship be-
tween frequency of scheduled transportation services and their substitutability with
personal transportation (using distance as a proxy). We study the interaction between
a monopoly firm providing a high-speed scheduled service and private transportation
(i.e., car). Interestingly, the carrier chooses to increase the frequency of service on
longer routes when competing with personal transportation because by providing higher
frequency (at extra cost) it can also charge higher fares which can boost its profits.
However, in line with the results of earlier studies, frequency decreases for longer flights
when driving is not a viable option. An empirical application of our analysis to the
European airline industry confirms the predictions of our theoretical model.
Keywords: short-haul routes; long-haul routes; flight frequency; distance
JEL Classification Numbers: L13; L2; L93 |
Publication date:
|
2009 |
Subject (UDC):
|
338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus |
Subject(s):
|
Oligopolis Organització industrial Aviació comercial Aviació-Vols Transport públic |
Rights:
|
Aquest document està subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i el departament i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús (http://creativecommons.org/licenses/by-nc-nd/2.5/es/) |
Document type:
|
Working Paper |
ISSN:
|
1988 - 0812
|
Collection:
|
Documents de treball del Departament d'Economia;2009-06
|
Share:
|
|