%0 Journal Article
%T Dynamic Effect of Low-Cost Entry on the Conduct Parameter: An Early-Stage Analysis of Southwest Airlines and America West Airlines
%A Hideki Murakami
%J Modern Economy
%P 281-292
%@ 2152-7261
%D 2013
%I Scientific Research Publishing
%R 10.4236/me.2013.44032
%X <p class=\"MsoNormal\">
	<span lang=\"EN-US\">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 examin</span><span lang=\"EN-US\">e</span><span lang=\"EN-US\"> the cases of
Southwest Airlines and America West Airlines due to the availability of data. Our
interest</span><span lang=\"EN-US\">s</span><span lang=\"EN-US\"> </span><span lang=\"EN-US\">are</span><span lang=\"EN-US\"> 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</span><span lang=\"EN-US\"> </span><span lang=\"EN-US\">=</span><span lang=\"EN-US\"> </span><span lang=\"EN-US\">MC¡±
competition, and competitive fashions were sometimes stable but sometimes not.</span> 
</p>
%K Low-Cost Carrier (LCC)
%K Entry
%K Dynamic Analysis
%K Conduct Parameter
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=30756