Choices are in bold and underlined, rigid consequences are in boxes, and flexible consequences nor every consequence. We have made use of aggregation and decomposable ade by ryanair are plain text. Notice that the representation does not include every choice Figure 3 is a representation of Ryanair's business model with theories. To explicitly account for theories, we include a short text with the justification for each arrow. to keep the representations simple, however, in the rest of the paper we will place the arrows without explicit theories. Only when a theory is not obvious will it be written down because, as Figure 3 illustrates, when theories are explicitly accounted for, the diagram becomes harder to read. Figure 3 yanair's Business Model with Theories Absence c meals lowers cost Short haul Economies of scale Low vanable cost foung travelers are f Attracts abilty to 8noe, travel Large Sotmie_ Ancillary condary Secondary airports alka low D utilization air fares elate Bargaining po Standardized Excrement about lage noun depend fleet of 737s advertisi ing Low commissions Combative_ Attracts combative team-are lkely to act as Nonunionized uniore Incividuals selFeelect Spartan headquarters In summary, the causal loop diagram represents theories linking choices and consequences that allow us to conjecture that Ryanair is able to offer service at a very low cost without reducing too much the customers willingness to pay in the target segment We should point out that the absence of arrows also implicitly defines theories. For example, Ryanair's choices of a standardized fleet and the use of secondary airports are unrelated, even if they may reinforce one another by leading to low maintenance costs and rapid turnoversIESE Business School-University of Navarra - 7 Choices are in bold and underlined, rigid consequences are in boxes, and flexible consequences are plain text. Notice that the representation does not include every choice made by Ryanair nor every consequence. We have made use of aggregation and decomposability. Figure 3 is a representation of Ryanair’s business model with theories. To explicitly account for theories, we include a short text with the justification for each arrow. To keep the representations simple, however, in the rest of the paper we will place the arrows without explicit theories. Only when a theory is not obvious will it be written down because, as Figure 3 illustrates, when theories are explicitly accounted for, the diagram becomes harder to read. Figure 3 Ryanair’s Business Model with Theories In summary, the causal loop diagram represents theories linking choices and consequences that allow us to conjecture that Ryanair is able to offer service at a very low cost without reducing too much the customers’ willingness to pay in the target segment. We should point out that the absence of arrows also implicitly defines theories. For example, Ryanair’s choices of a standardized fleet and the use of secondary airports are unrelated, even if they may reinforce one another by leading to low maintenance costs and rapid turnovers