1. It has been said that Porter’s five forces analysis turns antitrust law on its head. What do you think this means in terms of US commercial airlines?

Question

Supposing Delta is an example of a very large US commercial airline, how does the magnitude of scale economies affect the intensity of each of the five forces?

3. (2 points; 1 point each):

a. How does capacity utilization affect the intensity of internal rivalry in the commercial airline industry?

b. How does capacity utilization affect the extent of entry barriers in this industry?

3. (2 points; 1 point each)

a. In the US, how does the magnitude of consumer switching costs affect the intensity of internal rivalry in the US commercial airline industry?

b. How does the magnitude of consumer switching costs affect the intensity of entry into this industry?

4. (2 points; 1 point each)

a. How do exit barriers affect internal rivalry in theUS commercial airline industry? [Hint: Think of your project.]

b. How do exit barriers affect entry into this industry?

10. (2 points; 1 point each):

a. Coopetition often requires firms to communicate openly. How is this different from collusion?

b. How can antitrust enforcers distinguish between coopetition and collusion in the US commercial airline industry?

besankoch08-tagged-mtfdtzws.pdf econ-5315ch8classnotes2-tagged-aiewpoio.pdf

Bidusha · Accepted Answer

ECON 5315		4
ECON 5315
Table of Contents
Answer 1	3
Answer 3 a	3
Answer 3 b	3
Answer 4 a	4
Answer 4 b	4
Answer 5 a	4
Answer 5 b	5
Answer 10	5
References	6
Answer 1
In any case is that, while assessing how Porter's five forces analysis "turns antitrust law on its head", the analysis depicts that despite the public authority's efforts to advance fair competition, bigger corporations such as Delta can use their economies of scale and memorability to create barriers to section, go into value wars and establish more pleasant supplier contracts that will a smaller airline (Besanko et al., 2009). Hence, this results in smaller airlines expecting to foster neighborhood or provincial specialty markets where they can occupy spaces that bigger airlines do not have a significant presence.
Answer 3 a
If airlines are not using their ability as effectively as possible, excess limits must exist. Hence, value wars will generally ensue when an excess limit exists.

1. It has been said that Porter’s five forces analysis turns antitrust law on its head. What do you think this means in terms of US commercial airlines? Supposing Delta is an example of a very large...

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