An Econometric Analysis of the Impact of Low-cost Carrier's entry on Regional and National Economy : The case of the US and Japan

(1)对美国双寡头和三家寡头航空市场的横断面分析表明，西南航空公司的进入对市场扩张有显著影响。由于它的进入，市场需求曲线在短期内向上移动，价格和产量增加，但在长期内市场价格下降。在产出方面，从长期来看，西南航空的竞争对手面临着产出的显著下降，尤其是在西南航空和竞争对手基地相同的O/D机场的情况下。(2)通过对美国双寡头垄断和三家寡头垄断航空市场的面板分析，发现西南航空在进入后保持了其价格，其竞争对手也长期参与竞争。因此，价格不会恢复到进入前的水平。至于其他进入案例，价格竞争在新进入后不久就开始了，但价格战往往会在几年内结束，价格将恢复到进入前的水平。(3)日本主要航空公司之间的价格竞争很少，但他们与新干线快车竞争。相反，日本主要航空公司正在进行质量竞争。此外，日本主要航空公司在东京-札幌、东京-九州等共同垄断的长途市场中赚取利润，似乎是在与新干线和国内低密度市场竞争的国际市场和国内市场之间进行交叉补贴。

(1)The cross-sectional analyses of US duopoly and 3-firm oligopoly air markets reveal that the entry of Southwest Airlines has significant impact on the market expansion. Due to its entry, the market demand curve shifts upward and the price and output increase in the short run, but in the long run the market price goes down. As for outputs, Southwest's rival faces significant decrease in its output in the long run, especially where Southwest and its rival base the same O/D airports.(2)The panel analyses of the US duopoly and 3-firm oligopoly air market reveal that Southwest maintains its price after its entry and its rival(s) is(are) also permanently involved in the competition. Therefore, the prices will not restore to the pre-entry level. As for other entry case, price competitions start shortly after the new entry but the price war tends to end in a couple of years and prices will restore to the pre-entry level.(3)There are few price competitions between Japanese major airlines but they compete with Shinkansen Express. Instead, Japanese major airlines are doing quality competition. Furthermore, Japanese major airlines earn their profit from long-haul jointly-monopolized markets such as Tokyo-Sapporo and Tokyo-Kyushu seem to cross-subsidy international markets and domestic markets where they compete with Shinkansen and domestic low-density markets.