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We study the consumer welfare effects of mergers in airline networks. Based on the development of a general … America West Airlines - US Airways merger completed in 2005. We find that although average prices increased substantially on … routes in which both airlines competed either on a non-stop or one-stop basis prior to the merger, substantial average price …
Persistent link: https://www.econbiz.de/10009746475
This paper investigates the consumer welfare consequences of the recent code-share agreement between Continental Airlines and Northwest Airlines. We develop a discrete choice model based on individual flight characteristics. This structural model recognizes that consumers i) may have...
Persistent link: https://www.econbiz.de/10014060565
I assess the effect of recent U.S. airline mergers on productive efficiency and market power. I recover productivity …, markup, and marginal cost estimates for each airline using production and cost data. I then employ these estimates, a panel … marginal costs. Some mergers, such as the American-US Airways merger, have substantially increased the markups charged. The …
Persistent link: https://www.econbiz.de/10013322271
Theoretical research has investigated the relevance of entry-inducing effects as countervailing factor to a merger …-related increase in market power. We use route-level data for the America West Airlines – US Airways merger (2005) to investigate …
Persistent link: https://www.econbiz.de/10014038846
This paper uses merger simulations to predict post-merger prices for six major airline mergers from the 1980's, and … compares these predictions with actual post-merger prices. Simulations which incorporate varying degrees of post-merger … of the post-merger price change, but should not be expected to account for all of it. Changes in marginal cost or firm …
Persistent link: https://www.econbiz.de/10014085944
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competition between firms, and by reducing the amount of consumer data collected. We argue that merger policy guidelines should …
Persistent link: https://www.econbiz.de/10012628762
The paper estimates the effects of entry by low-cost carrier JetBlue Airways in long-haul domestic U.S. airline markets …. -- Airline industry ; entry ; low-cost carrier ; consumer welfare effects …
Persistent link: https://www.econbiz.de/10009661199