Competition in European Aviation: Pricing Policy and Market Structure
研究了欧洲航空自由化双边协议对航线价格竞争和市场结构的影响，发现自由化后企业利用成本优势并增加产品差异化，但市场结构仍受机场设施等辅助服务控制。
The purpose of this paper is to analyze the impact of liberal bilateral agreements on some European air routes in terms of price competition and market structure. I propose a model that explains firms' behaviour and shows that, after the liberalization, firms exploit their cost advantages and differentiate their products more, but market structure still depends on access to airport facilities and other ancillary services controlled by the flag carriers. These results differ from American evidence in that we find that the effect of airport presence on prices through lower costs more than offsets the effect through higher perceived quality.