Airline networks as joint goods: Implications for competition policy

Andrew Nathan Kleit, Stewart G. Maynes

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

This article derives a model of airline services as joint goods. Using this model, the article shows how the existence of higher fares in certain "hub" routes may imply the market has generated a solution to the problem of covering joint costs by having a larger proportion of those costs come from hub routes, rather than the existence of any general market failure. The model is then used to make recommendations for competition policy.

Original languageEnglish (US)
Pages (from-to)175-186
Number of pages12
JournalJournal of Regulatory Economics
Volume4
Issue number2
DOIs
StatePublished - Jun 1 1992

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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