Economics, Econometrics and Finance
8 years ago

Chinese Aviation Industry Faces Intense Price Competition Amid Market Transformation.

Economic Survey
An Analysis of Market Structure and Price Competition Strategy of Chinese Aviation Transportation Service Industry
Yang Bai

Paper Summary

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The Chinese aviation transportation service industry has a market structure of oligarch monopoly but operates with characteristics of monopoly competition. This means that airlines compete for passengers mainly through pricing strategies, offering different prices for sub-seats. Companies must balance strong price competition for price-sensitive passengers with avoiding harmful competition.