Effects of Southwest Airlines' entry and airport dominance
被引:8
作者:
Asahi, Ryota
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机构:
Kyushu Sangyo Univ, Fac Commerce, Higashi Ku, 2-3-1 Matsukadai, Fukuoka 8138503, JapanKyushu Sangyo Univ, Fac Commerce, Higashi Ku, 2-3-1 Matsukadai, Fukuoka 8138503, Japan
Asahi, Ryota
[1
]
Murakami, Hideki
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机构:
Kobe Univ, Grad Sch Business, Nada Ku, 2-1 Rokkodai, Kobe, Hyogo 6578501, JapanKyushu Sangyo Univ, Fac Commerce, Higashi Ku, 2-3-1 Matsukadai, Fukuoka 8138503, Japan
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
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.
机构:
Tel Aviv Univ, Transport Res Unit, Dept Geog & Human Environm, POB 39040, IL-69978 Tel Aviv, IsraelUniv Libre Bruxelles, Fac Sci, DGES IGEAT, Ave FD Roosevelt,50,CP 130-03, B-1050 Brussels, Belgium
机构:
Tel Aviv Univ, Transport Res Unit, Dept Geog & Human Environm, POB 39040, IL-69978 Tel Aviv, IsraelUniv Libre Bruxelles, Fac Sci, DGES IGEAT, Ave FD Roosevelt,50,CP 130-03, B-1050 Brussels, Belgium