论文信息 - The Way of Offering Vertically Differentiated Airline Services

The Way of Offering Vertically Differentiated Airline Services

This work investigates whether an airline should offer vertically differentiated services that are substitutes for its own services. Under a general setting, we show that offering only one type of service in any particular city-pair market is necessary for the airline’s profit maximization. This result justifies a common assumption in the literature that an airline offers only one type of service in a particular market. Further, this result can explain the empirical finding that airlines that offer a one-stop service are less likely to provide a nonstop service in the same market than those that do not do so. © 2012 Elsevier B.V. All rights reserved.

Tomohiko Kawamori | Ming Hsin Lin | Tomohiko Kawamori | M. Lin

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