Scheduled service versus personal transportation : the role of distance
Bilotkach, Volodymyr (University of California-Irvine. Department of Economics)
Fageda, Xavier, 1975- (Universitat de Barcelona. Departament de Política Econòmica)
Flores-Fillol, Ricard (Universitat Rovira i Virgili. Departament d'Economia)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint:	Xarxa de Referència en Economia Aplicada (XREAP) 2008
Description:	45 p.
Abstract:	This paper analyzes both theoretically and empirically the relationship between distance and frequency of scheduled transportation services. We study the interaction between a monopoly firm providing high-speed scheduled service and personal trans- portation (i. e. , car). Most interestingly, the carrier chooses to increase frequency of service on longer routes when competing with personal transportation because provid- ing a higher frequency (at extra cost) it can also charge higher fares that can boost its profits. However, when driving is not a relevant option, frequency of service de- creases for longer flights consistently with prior studies. An empirical application of our analysis to the European airline industry con?rms the predictions of our theoretical model.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Series:	Xarxa de Referència en Economia Aplicada (XREAP). Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series:	XREAP ; 2008-13
Document:	Working paper
Subject:	Short-haul routes ; Long-haul routes ; Flight frequency ; Distance ; Economia del transport ; Transport aeri

47 p, 552.5 KB

The record appears in these collections:
Research literature > Working papers