Dynamic effect of inter-firm rivalry on airfares: Case of Japan's full-service and new air carriers

@inproceedings{Murakami2015DynamicEO,
  title={Dynamic effect of inter-firm rivalry on airfares: Case of Japan's full-service and new air carriers},
  author={Hideki Murakami and Yoshihisa Amano and Ryota Asahi},
  year={2015}
}
This paper analyzes the dynamic changes in carriers' airfares and outputs and computes the change in the consumers' surplus year by year after new Japanese carriers entered thriving routes and started to compete with Japanese full-service airlines. Using unbalanced panel data from 222 routes and carrier specific sample observations, it finds that new carriers discounted airfares significantly as soon as they entered new markets, but two early carriers, Skymark Airlines and AIRDO, which had… CONTINUE READING