Trevor Acy's personal annotations on this page
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Still, there is reason for concern over airline competition and pricing. Because they are least sensitive to price, business travelers are most susceptible to being charged markups by airlines with dominant market positions and little effective competition. Competition tends to weakest on nonstop routes to and from major hubs such as Pittsburgh, Dallas-Ft. Worth, and Cincinnati. In many of these markets, the hubbing carriers controls 50 percent or more of the local traffic. Fares in these markets—which are often business markets—tend to be higher, on average, than in most other markets.
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Of particular concern is that the conduct is predatory—intended to suppress competition in order to raise fares well above efficient, competitive levels.
This link has been bookmarked by 1 people . It was first bookmarked on 27 Sep 2008, by Trevor Acy.
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Trevor Acy
1999 study
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Still, there is reason for concern over airline competition and pricing. Because they are least sensitive to price, business travelers are most susceptible to being charged markups by airlines with dominant market positions and little effective competition. Competition tends to weakest on nonstop routes to and from major hubs such as Pittsburgh, Dallas-Ft. Worth, and Cincinnati. In many of these markets, the hubbing carriers controls 50 percent or more of the local traffic. Fares in these markets—which are often business markets—tend to be higher, on average, than in most other markets.
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Of particular concern is that the conduct is predatory—intended to suppress competition in order to raise fares well above efficient, competitive levels.
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