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A. V. M. Oliveira and C. Huse, “Localized Competitive Advantage and Price Reactions to Entry: Full-Service vs. Low-Cost Airlines in Recently Liberalized Emerging Markets,” Transportation Research Part E, Vol. 45, No. 2, 2009, pp. 307-320. doi:10.1016/j.tre.2008.09.003

has been cited by the following article:

• TITLE: Dynamic Effect of Low-Cost Entry on the Conduct Parameter: An Early-Stage Analysis of Southwest Airlines and America West Airlines

  AUTHORS: Hideki Murakami

  KEYWORDS: Low-Cost Carrier (LCC); Entry; Dynamic Analysis; Conduct Parameter

  JOURNAL NAME: Modern Economy, Vol.4 No.4, April 30, 2013

  ABSTRACT: The purpose of this research is to investigate the dynamic changes in the competition between air carriers by applying a revised conduct parameter method. We examine the cases of Southwest Airlines and America West Airlines due to the availability of data. Our interests are in what fashion a low-cost carrier entered the market, how the rival reacted, and whether the fashions of competition between two types of air carrier remained stable as time passed. Our empirical results show that the fashions of competition fell between Cournot and “P = MC” competition, and competitive fashions were sometimes stable but sometimes not.