Southwest

The Effect of a Low Cost Carrier in the airway business Industry By Christine Wang MMSS Honors Seminar June 6, 2005 *a special thank 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. new(prenominal) Factors Influencing Pricing Behavior.p. 10-15 A) Hubs and commercialise Share B) Price dissimilitude V. The southwestern Effectp. 15-19 A) southwesterns Success B) The interpretation C) A Study on southwesterly VI. The Analysis.....p. 19-32 A) The Origins of the statistical 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: Individua l Airline Analysis...p. 36-38 Works Citedp.

39 2 Abstract This acme analyzes the consequence of the Southwest Effect on the pricing of fares in the airline industry. First, it discusses the basic principles of pricing under competition, large diet market place 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 different competitors in that mark et to lower their fares as well? Or do the l! ower fares of Southwest merely lower the number fare in the market? If Southwest does influence other competitors to lower their fares, does it have more of an impact on authentic airlines? This paper will...If you want to get a full essay, clubhouse it on our website: OrderEssay.net

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