A key characteristic of a contestable market is low barriers to entry and exit. These markets with only a few competitors maybe more competitive than they appear to be. An example would be starting an airline route from one city to another. If the route is not profitable, the airline has the option to delete the route.
In trying to understand this concept, I did a little research on the airline route from Cincinnati, OH to Los Angeles, CA. There are very few flights that serve this route and the prices always seem to be way higher than the rest of the country. It has a few competitors and seems to be profitable. If it is truly contestable, other airlines besides Delta should claim stake. If it is not, then it is an oligarchy, in which case the airline regulators should do something.
Either ways, CVG does not seem to be a very airline friendly airport and I for one would like to see that rectified.
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