Abstract
Passengers, airlines, and airport managers are the agents in the aviation market. Recent economic analyses (on the matter) have mostly been confined to the passenger market, where airline networks are given exogenously. Naturally, such framework is unsuitable for the discussions concerning airport management, or the emergence of hub-spoke networks. In this paper, we construct the behavior-based models for respective participants in the market. Then we identify the condition under which a hub-spoke network is formed, and examine the effect of landing fee policy on the market structure.
