A note on the competitive advantage of large hub-and-spoke networks

被引:36
|
作者
Nero, G [1 ]
机构
[1] Univ Calif Berkeley, Inst Transport Studies, Berkeley, CA 94720 USA
关键词
hub-and-spoke network; economies of traffic density; economies of scope; competitive advantage;
D O I
10.1016/S1366-5545(99)00011-3
中图分类号
F [经济];
学科分类号
02 ;
摘要
This note explores the extent to which airlines operating large hub-and-spoke networks secure a competitive advantage. More specifically, this paper explores the intricate relationship which arises among productive efficiencies and profitability when the size of the hub-and-spoke network expands. To this end, Brueckner and Spiller (1991, International Journal of Industrial Organization 9, 323-342) airline economics model is generalized by allowing the size of the hub-and-spoke network to vary. The central result shows that, although the model exhibits decreasing returns to firm/network size (RTNS), nonetheless there is a competitive advantage to increasing the size of a network. (C) 1999 Elsevier Science Ltd. All rights reserved. JEL classification. L13; L43; L93.
引用
收藏
页码:225 / 239
页数:15
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