An Empirical Investigation of the Competitive Effects of Domestic Airline Alliances / Gustavo E. Bamberger, Dennis W. Carlton, Lynette R. Neumann.

Format:

Book

Author/Creator:

Bamberger, Gustavo E.

Contributor:

National Bureau of Economic Research.

Carlton, Dennis W.

Neumann, Lynette R.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8197.

NBER working paper series no. w8197

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

In this paper, we investigate empirically the effect of two recent domestic airline alliances. We find that both alliances benefited consumers - average fares fell and total traffic increased after the creation of the alliances on those city pairs affected by the alliances. We also find that these effects are found both on city pairs where the alliance created one or two new online carriers, and on city pairs where the alliance increased the service offered by one or both alliance partners. Finally, we find that the size of the fare effect of the alliance depends on the pre-alliance level of competition on a city pair with the effect being larger on those city pairs where the level of competition was relatively low.

Notes:

Print version record

March 2001.