Airline networks, mergers, and consumer welfare


Hüschelrath, Kai ; Müller, Kathrin


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URL: https://ub-madoc.bib.uni-mannheim.de/33714
URN: urn:nbn:de:bsz:180-madoc-337141
Document Type: Working paper
Year of publication: 2013
The title of a journal, publication series: ZEW Discussion Papers
Volume: 13-028
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,
Keywords (English): Airline industry , merger , market power , consumer welfare , price effects
Abstract: We study the consumer welfare effects of mergers in airline networks. Based on the development of a general classification of affected routes, we apply a difference-indifferences approach to exemplarily investigate the price effects of the 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 reductions observed for routes without any premerger overlap suggest that the merger led to a net increase in consumer welfare.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Hüschelrath, Kai ; Müller, Kathrin (2013) Airline networks, mergers, and consumer welfare. Open Access ZEW Discussion Papers Mannheim 13-028 [Working paper]
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