The Economic Analysis of Hub-And-Spoke Networks

In this proposal, we give an elaborate description on the importance of studying hub-and-spoke networks and a detailed literature survey about it. Meanwhile, we indicate two points which the theoretic literatures need to modify. First, the service quality between direct transport and transfer transport should be different. Second, facing the airline alliances in the world, we should develop an endogenous integrated model to explain these. Correspond to the two question points we indicated above, we are going to lead in Mussa and Rosen (1978)’s quality differentiated model to solve the first question points, and build up an endogenous integrated model under Bruechner (2001)’s model and Horn and Persson (2001)’s endogenous integrated concept.

Project ID:PB9709-0226
External Project ID:NSC97-2410-H182-008