The dynamics of HSR preference in the context of short-haul flight bans

This paper applies a model in which a local market served by high-speed rail (HSR) and an airline is connected with an international market serving two different airlines. Our aim is to assess the necessity for a ban on short-haul flights from an economic policy standpoint and to investigate the potential for market self-regulation to eradicate unnecessary flights. Specifically, we examine whether banning short flights is economically necessary or if the market can independently eliminate non-essential flights. We find that raising HSR preference among individuals is preferable to directly intervening in the market. The results of this study are especially useful for market segmentation and pricing tactics in the transportation industry.