A dynamic game of airline network competition: Hub-and-spoke networks and entry deterrence

被引：25
|
作者：
Aguirregabiria, Victor [1 ]
Ho, Chun-Yu [2 ]
机构：
[1] Univ Toronto, Toronto, ON M5S 1A1, Canada
[2] Georgia Inst Technol, Atlanta, GA 30332 USA
来源：
INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION | 2010年 / 28卷 / 04期
关键词：
Dynamic games; Airline networks; Hub-and-spoke; Entry deterrence; Supermodularity;
D O I：
10.1016/j.ijindorg.2010.03.003
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
In a hub-and-spoke network, the profit function of an airline is supermodular with respect to the airline's own entry decisions for different city-pairs. This source of complementarity implies that a hub-and-spoke network can be an effective strategy for deterring the entry of competitors. This paper presents an empirical dynamic game of airline network competition that incorporates this entry deterrence motive for using hub-and-spoke networks. We summarize the results of the estimation of the model, with special attention to empirical evidence regarding the entry deterrence motive. (C) 2010 Elsevier B.V. All rights reserved.
引用
收藏
页码：377 / 382
页数：6
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