Oligopoly Behaviour in the Trans-Tasman Air Travel Market: TheCase of Kiwi International

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dc.contributor.author Haugh, David en
dc.contributor.author Hazledine, Tim en
dc.date.accessioned 2006-11-30T20:53:39Z en
dc.date.available 2006-11-30T20:53:39Z en
dc.date.issued 1999 en
dc.identifier.citation Department of Economics Working Paper Series 190 en
dc.identifier.uri http://hdl.handle.net/2292/195 en
dc.description.abstract The duopoly of Air New Zealand and Qantas serving the trans-Tasman air travel market was disturbed in August 1995 by the entry of a small former charter airline, Kiwi International, based in Hamilton, NZ. Kiwi exited into liquidation in September 1996. The intervening thirteen months saw the entry of a 'fighting brand' no-frills airline, Freedom Air, set up by Air New Zealand to compete directly with Kiwi, and then a general price war initiated by Qantas, which directly preceded Kiwi_s demise. Was the behaviour of the incumbent duopolists 'predatory', in the sense of being designed to drive the new entrant from the market? Standard tests based on comparisons of price and costs are inconclusive. The innovation of this paper is to model the oligopolistic behaviour of the firms before and after entry. It is found that the duopolists became substantially more 'competitive' during the price war period, consistent with an interpretation of intent to predate. en
dc.format.extent application/pdf en
dc.format.mimetype text en
dc.language.iso en en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartofseries Department of Economics Working Paper Series (1997-2006) en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.subject.other Economics en
dc.title Oligopoly Behaviour in the Trans-Tasman Air Travel Market: TheCase of Kiwi International en
dc.type Working Paper en
dc.rights.holder Copyright: the author en
dc.rights.accessrights http://purl.org/eprint/accessRights/OpenAccess en
pubs.org-id Economics en

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