STRATEGIC AIRLINE ALLIANCES: COMPLEMENTARY VS. PARALLEL ALLIANCES

This paper presents a model that examines the effects on market outcome and welfare of two types of strategic airline alliances: complementary vs. parallel alliances. It is identified that the two alliances have different effects on total output and consumer surplus. The complementary alliance is likely to increase total output, while the parallel alliance is likely to decrease it. Consequently, the former increases consumer surplus, while the latter is likely to decrease it. We find sufficient conditions under which each type of alliance improves total welfare.

Language

  • English

Media Info

  • Features: Figures; References;
  • Pagination: p. 181-195

Subject/Index Terms

Filing Info

  • Accession Number: 00783932
  • Record Type: Publication
  • ISBN: 0080435904
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Feb 7 2000 12:00AM