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Efficiency and stability of an open sky network

Author

Listed:
  • Katsuhiro Yamaguchi

    (Graduate School of Public Policy, The University of Tokyo)

  • Masashi Yamamoto

    (Global Security Research Institute, Keio University)

  • Yuichiro Yoshida

    (National Graduate Institute for Policy Studies)

Abstract

North America, Europe, and Asia are three largest regional blocks in the global aviation. EU has liberalized its aviation market within the region, following the north America. However, Asia is still left behind, and most of the markets in the region are governed by bilateral air service agreements. This paper shows that, any pair of countries with an exclusive bilateral air-service agreement has no incentive to open their market to the third country; and yet that a comprehensive multilateral air service agreement within the entire region improves the welfare of all countries in the region.

Suggested Citation

  • Katsuhiro Yamaguchi & Masashi Yamamoto & Yuichiro Yoshida, 2008. "Efficiency and stability of an open sky network," GRIPS Discussion Papers 07-14, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:07-14
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