Author, as appears in the article.: Brueckner J; Flores-Fillol R

Department: Economia

URV's Author/s: Flores Fillol, Ricardo

Keywords: Service quality Double marginalization Congestion Alliance

Abstract: © 2019 Elsevier B.V. This paper explores the effect of market structure on quality determination for complementary products. The focus is on the airline industry and the effect of airline alliances on flight frequency, an important element of service quality. With zero layover cost, the choice of flight frequencies has the same double-marginalization structure as in the usual alliance model, leading to a higher frequency in the alliance case as double marginalization is eliminated, along with a lower full trip price and higher traffic. The surprising result of the paper emerges with high-cost layover time, where double marginalization in frequencies is absent and where an alliance reduces service quality via a lower frequency, with the full price potentially rising (in which case traffic falls).

Thematic Areas: Strategy and management Science and technology studies Industrial relations Industrial and manufacturing engineering Engineering (miscellaneous) Economics, econometrics and finance (miscellaneous) Economics and econometrics Economics Economia Ciencias sociales Business and management Aerospace engineering

ISSN: 01677187

Author's mail: ricardo.flores@urv.cat

Author identifier: 0000-0002-3506-1634

Record's date: 2023-02-19

Papper version: info:eu-repo/semantics/acceptedVersion

Link to the original source: https://www.sciencedirect.com/science/article/abs/pii/S0167718719300852

Licence document URL: http://repositori.urv.cat/ca/proteccio-de-dades/

Papper original source: International Journal Of Industrial Organization. 68 (102557):

APA: Brueckner J; Flores-Fillol R (2020). Market structure and quality determination for complementary products: Alliances and service quality in the airline industry. International Journal Of Industrial Organization, 68(102557), -. DOI: https://doi.org/10.1016/j.ijindorg.2019.102557

Article's DOI: 10.1016/j.ijindorg.2019.102557

Entity: Universitat Rovira i Virgili

Journal publication year: 2020

Publication Type: Journal Publications