Effects of Southwest Airlines' entry and airport dominance

被引:8
作者
Asahi, Ryota [1 ]
Murakami, Hideki [2 ]
机构
[1] Kyushu Sangyo Univ, Fac Commerce, Higashi Ku, 2-3-1 Matsukadai, Fukuoka 8138503, Japan
[2] Kobe Univ, Grad Sch Business, Nada Ku, 2-1 Rokkodai, Kobe, Hyogo 6578501, Japan
关键词
US airline industry; LCC; Southwest Airlines; Entry; Airport dominance; LOW-COST CARRIERS; INTERFIRM RIVALRY; FULL-SERVICE; EMPIRICAL-ANALYSIS; INDUSTRY; COMPETITION; MARKETS;
D O I
10.1016/j.jairtraman.2017.06.029
中图分类号
U [交通运输];
学科分类号
08 ; 0823 ;
摘要
We empirically analyzed the pricing behavior of Southwest Airlines and its rivals in markets into which Southwest Airlines had newly entered. We used simultaneous demand and price equations using US airline industry data for the fourth quarters of 2003-2010. Our results produced two important findings. First, Southwest Airlines may set flexible prices while enjoying own airport dominant power after its entry. Second, Southwest Airlines' rivals set competitive prices after it entered their markets, but they set more competitive prices beginning in the fourth year after Southwest Airlines' entry on routes through airports where Southwest Airlines was not a dominant power. (C) 2017 Elsevier Ltd. All rights reserved.
引用
收藏
页码:86 / 90
页数:5
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