Code-Sharing Agreements and Interconnections in Markets for International Flights

16 Pages Posted: 28 Aug 2004

See all articles by Orit Hassin

Orit Hassin

University of Haifa

Oz Shy

Federal Reserve Banks - Federal Reserve Bank of Atlanta

Abstract

The paper investigates the consequences of code-sharing agreements among airline firms competing on international routes, where some passengers interconnect to flights originating or terminating at cities not served by foreign airlines. The authors calculate the precise market share captured by flights operated under code sharing. They compare airfares, market shares, profits, and passengers' welfare before and after the implementation of a code-sharing agreement and demonstrate that code sharing is Pareto-improving.

Suggested Citation

Hassin, Orit and Shy, Oz, Code-Sharing Agreements and Interconnections in Markets for International Flights. Review of International Economics, Vol. 12, No. 3, pp. 337-352, August 2004. Available at SSRN: https://ssrn.com/abstract=573066

Orit Hassin (Contact Author)

University of Haifa ( email )

Mount Carmel
Haifa, 31905
Israel

Oz Shy

Federal Reserve Banks - Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

HOME PAGE: http://https://www.frbatlanta.org/research/economists/shy-oz.aspx

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