Journal article
Network Structure and Entry in the Deregulated Airline Industry
Keio economic studies, Vol.35(2), pp.71-82
01/01/1998
Abstract
We explore how an incumbent airline firm structures its route network under the threat of entry caused by deregulation. We show that entry induces the incumbent firm to strategically alter its flight operating network from a fully connected network (FC) to a hub-and-spoke network (HS). While most of the literature always assumed that the use of a HS network is primarily for the purpose of cost reduction, we show that hub-and-spoke operation can be used as a strategic device by the incumbent firm when it faces a threat of entry in its operating zone.
Details
- Title: Subtitle
- Network Structure and Entry in the Deregulated Airline Industry
- Creators
- Joseph BerechmanSougata PoddarOz Shy
- Resource Type
- Journal article
- Publication Details
- Keio economic studies, Vol.35(2), pp.71-82
- ISSN
- 0022-9709
- Number of pages
- 12
- Language
- English
- Date published
- 01/01/1998
- Academic Unit
- Economics
- Record Identifier
- 9984963443802771
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