| Title: | Scheduled service versus personal transportation : the role of distance |
|---|---|
| Author: | Bilotkach, Volodymyr; Fageda, Xavier,; Flores-Fillol, Ricard; Xarxa de Referència en Economia Aplicada (XREAP) |
| Abstract: | 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. |
| Subject(s): | -Short-haul routes -Long-haul routes -Flight frequency -Distance -Economia del transport -Transport aeri |
| Rights: | open access
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 la xarxa i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús https://creativecommons.org/licenses/by-nc-nd/2.5/ |
| Document type: | Working paper |
| Published by: | Xarxa de Referència en Economia Aplicada (XREAP) |
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| Uri: | https://ddd.uab.cat/record/45469 |
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