RELEVANT MEASURES OF RETURNS TO SCALE AND NETWORK SIZE IN MULTIPRODUCT NETWORK TECHNOLOGIES: AN APPLICATION TO THE U.S. DOMESTIC AIRLINE INDUSTRY

Hedonic cost functions allow characterization of a complex set of outputs using few output indices. This thesis details the proper method of choosing hedonic variables to include in a study if measuring returns to scale is an objective. It derives the relevant measures of returns to scale for such a hedonic cost study and shows the number of such measures for the airline industry. The thesis then presents a cost study of the airline industry performed to determine the value of those relevant measures of returns to scale and network size, using a panel of 16 firms observed quarterly over 15 years. It investigates the hypothesis that individual carriers share cost coefficients and also makes individual carrier estimations, exploring the differences between those estimations and the panel estimations.

  • Corporate Authors:

    University of Montreal

    Center for Research on Transportation (CRT)/CIRRELT
    P.O. Box 6128, Station Centre-ville
    Montreal, Quebec  Canada  H3C 3J7
  • Authors:
    • REED, R
  • Publication Date: 1994

Language

  • English

Media Info

  • Pagination: 210 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00719184
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 27 1996 12:00AM