Market power, efficiencies, and entry : evidence from an airline merger


Hüschelrath, Kai ; Müller, Kathrin


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URL: https://ub-madoc.bib.uni-mannheim.de/32622
URN: urn:nbn:de:bsz:180-madoc-326227
Document Type: Working paper
Year of publication: 2012
The title of a journal, publication series: ZEW Discussion Papers
Volume: 12-070
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L40 , L93,
Subject headings (SWD): Luftverkehrsgesellschaft , Fusion , Marktmacht , Fahrpreis , wirtschaftliche Effizienz , Markteintritt , USA
Keywords (English): Airline industry , merger , market power , efficiencies , entry-inducing effects
Abstract: We investigate the competitive effects of the merger between Delta Air Lines and Northwest Airlines (2009) in the domestic U.S. airline industry. Applying fixed effects regression models we find that the transaction led to short term price increases of about 11 percent on overlapping routes and about 10 percent on routes which experienced a merger-induced switch of the operating carrier. Over a longer period, however, our analysis reveals that both merger efficiencies and post-merger entry by competitors initiated a downward trend in prices leaving consumers with a small net price increase of about 3 percent on the affected routes.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Hüschelrath, Kai ; Müller, Kathrin (2012) Market power, efficiencies, and entry : evidence from an airline merger. Open Access ZEW Discussion Papers Mannheim 12-070 [Working paper]
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