Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004: The domestic airline merger phenomenon of the …-US merger activity and the potential for international competitive incentives. Using an International Business perspective to … domestic airline merger phenomenon. A Cournot model of airline competition illustrates the international incentives behind …

merger between regulated firms when cost synergies are uncertain before the merger and their realization becomes private … information of the merged firm. The optimal merger policy trades off potential cost savings against regulatory distortions from … market induces a more lenient merger policy. The regulated firms' diversification into a competitive segment of the market …