The Effect of Local Competition in Hub-Spoke Networks. Volume 4: Transport Management

This paper suggests an explanation for the lack of local competition in airline hub-spoke networks. A negative network effect of local competition is identified: entry into a competitor’s local markets may reduce the entry carrier’s profit in its own hub-spoke network. As a result, even if a carrier could derive a positive profit from the invaded markets, it would not enter those markets if the negative network effect is sufficiently strong.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Appendices; Figures; References;
  • Pagination: pp 471-482
  • Monograph Title: World Transport Research. Proceedings of the 7th World Conference on Transport Research

Subject/Index Terms

Filing Info

  • Accession Number: 01080440
  • Record Type: Publication
  • ISBN: 0080427707
  • Files: TRIS
  • Created Date: Oct 31 2007 6:49AM