English, Article edition: Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines Steven A. Morrison

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/33005
Physical Description
  • article
Language
  • English

Edition details

Title
  • Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines
Author
  • Steven A. Morrison
Physical Description
  • article
Notes
  • Southwest Airlines is frequently credited with having an important influence on the success of airline deregulation in the United States. This paper uses an original set of competition variables to estimate the extent of that influence in 1998. The estimated savings - due to actual, adjacent, and potential competition from Southwest - were &​dollar;12.9 billion. Southwest's low fares were directly responsible for &​dollar;3.4 billion of these savings to passengers. The remaining &​dollar;9.5 billion represents the effect that actual, adjacent, and potential competition from Southwest had on other carriers' fares. These savings amount to 20 per cent of the airline industry's 1998 domestic scheduled passenger revenue and slightly more than half the fare reductions attributed to airline deregulation. From a policy perspective, these results are both troubling and encouraging. On the one hand, it is troubling to find that a large part of the fare reductions from airline deregulation is due to one carrier. On the other hand, if entry by a carrier with the appropriate characteristics can make such a difference, policies that encourage entry - for example, relaxing the restriction on entry by foreign-owned carriers - may have a large impact on passenger welfare. ? The London School of Economics and the University of Bath 2001
  • RePEc:tpe:jtecpo:v:35:y:2001:i:2:p:239-256
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment