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Market Share and Price Determination in the Contemporary Airline Industry

AMY D. ABRAMOWITZ and STEPHEN M. BROWN
Review of Industrial Organization
Vol. 8, No. 4 (August 1993), pp. 419-433
Published by: Springer
Stable URL: http://www.jstor.org/stable/41798449
Page Count: 15
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Market Share and Price Determination in the Contemporary Airline Industry
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Abstract

This paper examines airline pricing and market structure determination for domestic airportpair routes. The model includes variables to control for the effects of congestion, consumer brand preferences, barriers to entry into airports, and multiple airport availability within a city. The results indicate the noncontestability of airline markets, but certain factors can mitigate a carrier's endpoint dominance. Additionally, the need for policies addressing airport congestion is indicated by several aspects of model results.

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