@inproceedings{3a43af4eb4bd4ecaa7b1ad74a3856eb0,
title = "How market force and government regulation affect flight fare and safety investment: A microeconomic analysis",
abstract = "This paper presents a microeconomic analysis to explore the impacts of market force and government regulation on airlines' flight fare and safety investment. Three specific mechanisms associated with fare and safety decisions are discussed, i.e., duopoly competition, social optimum, and safety regulation. Under all mechanisms, consumers are assumed to have heterogeneous safety tastes, and airlines are assumed to make optimal decisions in a two-stage game of first safety investment and then flight fare. It is found that the differentiation of safety can be beneficial to not only commercial airlines but also the society when there are symmetric and complete information of safety between consumers and airlines. Furthermore, safety regulation from the government can assure the higher social welfare at the cost of some loss of airlines' profits.",
keywords = "Airline safety investment, Duopoly competition, Flight fare, Government regulation",
author = "Yunrui Gao and Tianliang Liu",
note = "Publisher Copyright: {\textcopyright} ASCE.; 17th COTA International Conference of Transportation Professionals: Transportation Reform and Change - Equity, Inclusiveness, Sharing, and Innovation, CICTP 2017 ; Conference date: 07-07-2017 Through 09-07-2017",
year = "2018",
doi = "10.1061/9780784480915.103",
language = "英语",
series = "CICTP 2017: Transportation Reform and Change - Equity, Inclusiveness, Sharing, and Innovation - Proceedings of the 17th COTA International Conference of Transportation Professionals",
publisher = "American Society of Civil Engineers (ASCE)",
pages = "1001--1008",
editor = "Haizhong Wang and Jian Sun and Jian Lu and Lei Zhang and Yu Zhang and ShouEn Fang",
booktitle = "CICTP 2017",
address = "美国",
}