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Review of Network Economics

Editor-in-Chief: Grzybowski, Lukasz

Ed. by Goetz, Georg / Pereira, Pedro

IMPACT FACTOR 2018: 0.080
5-year IMPACT FACTOR: 0.803

CiteScore 2018: 0.39

SCImago Journal Rank (SJR) 2018: 0.941
Source Normalized Impact per Paper (SNIP) 2018: 0.182

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Volume 8, Issue 2


The Functioning of Inter-modal Competition in the Transportation Market: Evidence from the Entry of Low-cost Airlines in Germany

Guido Friebel / Marko Niffka
Published Online: 2009-06-01 | DOI: https://doi.org/10.2202/1446-9022.1176

We investigate the entry of low-cost airlines (LCAs) in the German market. The strong competitive pressure of LCAs forced incumbent air and rail operators to reconsider their pricing strategy. Lufthansa reacted by a drastic cut of all prices for all intra-German origin and destinations (O&Ds). The physical conditions of DB, the incumbent railroad operator, made it harder to react. Being an open system, changing the price system on one O&Ds has substantial opportunity costs on other O&Ds in the same rail network. This imposes constraints on price strategies LCA and Lufthansa do not have to satisfy to the same extent.

About the article

Published Online: 2009-06-01

Citation Information: Review of Network Economics, Volume 8, Issue 2, ISSN (Online) 1446-9022, ISSN (Print) 2194-5993, DOI: https://doi.org/10.2202/1446-9022.1176.

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