Scheduled service versus personal transportation: the role of distance
- Autores: Volodymyr Bilotkach, Xavier Fageda Sanjuan, Ricardo Flores-Fillol
- Localización: Documentos de trabajo ( XREAP ), Nº. 13, 2008
- Idioma: español
- Enlaces
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Resumen
This paper analyzes both theoretically and empirically the relationship between distance and frequency of scheduled transportation services. We study the interaction between a monopoly firm providing high-speed scheduled service and personal trans- portation (i.e., car). Most interestingly, the carrier chooses to increase frequency of service on longer routes when competing with personal transportation because provid- ing a higher frequency (at extra cost) it can also charge higher fares that can boost its profits. However, when driving is not a relevant option, frequency of service de- creases for longer flights consistently with prior studies. An empirical application of our analysis to the European airline industry con?rms the predictions of our theoretical model.
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