Southwest

The Effect of a Low Cost Carrier in the air lane Industry By Christine Wang MMSS Honors Seminar June 6, 2005 *a special convey to my consultant Ian Savage Table of Contents Abstract....p. 3 I. Introduction...p. 4 II. deregulation..p. 4-6 III. Effects of opposition on Pricing Behavior.....p. 7-9 A) The curse of Entry B) Indirect Competition C) Competition of Airports within the homogeneous Metropolitan Area IV. some new(prenominal) Factors Influencing Pricing Behavior.p. 10-15 A) Hubs and commercialise Share B) Price favouritism V. The southwestern Effectp. 15-19 A) southwesterlys Success B) The comment C) A Study on southwestward VI. The Analysis.....p. 19-32 A) The Origins of the regression B) The Data C) The Estimating Equation D) descriptive Statistics and Explanation of Coefficients E) Regression without Southwest F) The Magnitude of Southwests Effect VII. The Effect of Southwest Todayp. 32-35 VIII. Conclusionp. 35 Appendix: Individual Airline Analysis... p. 36-38 Works Citedp.

39 2 Abstract This blot out analyzes the issue of the Southwest Effect on the pricing of fares in the airway industry. First, it discusses the basic principles of pricing under competition, large victuals foodstuff share, and price discrimination. Next, it discusses the role of Southwest in the airline market. The battlefront of a low cost carrier, such as Southwest, in a particular city pair market has extensive been assumed to impose the fares in that market. This publisher analyzes the extent to which this speculation is true. Does the fact that Southwest Airlines has low fares influence other(a) competitors in that market to lower their fares as well? Or do the lower fares of Southwest! merely lower the ordinary fare in the market? If Southwest does influence other competitors to lower their fares, does it have more of an impact on definite airlines? This paper will...If you want to get a full essay, set it on our website: OrderEssay.net

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