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- W578883326 abstract "A differentiated products model of the airline flight is developed. Spoking flights are treated as produced by a multiproduct production process. The number of flights, price, and number of passengers served through hubbing-and-spoking is determined. Firm responses to differing market conditions are examined. The welfare effects of hubbing-and-spoking are similar to the effects of second degree price discrimination, but may approach first degree price discrimination as the number of routes and classes of passengers served through a hubbing-and-spoking route system grows large. The social welfare effects of route and hub dominance are considered. The welfare effects are ambiguous. The route patterns are an improvement over the linear routes under regulation. But hub-and-spoke structures transfer consumer surplus to airlines and entail some welfare loss due to price increases. If hub domination arises it is likely to reduce the welfare of passengers originating at the hub." @default.
- W578883326 created "2016-06-24" @default.
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- W578883326 date "1991-09-01" @default.
- W578883326 modified "2023-09-26" @default.
- W578883326 title "AN ECONOMIC MODEL OF AIRLINE HUBBING-AND-SPOKING" @default.
- W578883326 hasPublicationYear "1991" @default.
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