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Optimal Air Service Agreements

Author

Listed:
  • Clarke, Harry

    (La Trobe University)

Abstract
Air Service Agreements are government-to-government negotiated bilateral agreements that determine a nation's permitted passenger carrying capacity between origin and endpoint nodes on particular international air routes. This study determines how social surplus-maximising agreements can be constructed under various demand and bargaining assumptions. The analysis is exposited in terms of the Australia-Japan air route although it is quite general. The role of marketing and downstream inter-industry effects are examined. Problems of computing optimal agreements are discussed.

Suggested Citation

  • Clarke, Harry, 1998. "Optimal Air Service Agreements," Economic Analysis and Policy, Elsevier, vol. 28(2), pages 169-186, September.
    • Handle: RePEc:eee:ecanpo:v:28:y:1998:i:2:p:169-186
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    Citations

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    Cited by:

    1. Forsyth, Peter, 2001. "Promoting trade in airline services," Journal of Air Transport Management, Elsevier, vol. 7(1), pages 43-50.

    More about this item

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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