Endogenous and Selective Service Choices After Airline Mergers

Abstract

Sweeting conducted some of this research during a five-month spell as an Academic Visitor at the US Department of Justice, whose hospitality is warmly acknowledged, although the paper does not reflect the views, opinions or practice of the Department. We thank a number of seminar participants and discussants for useful comments. The research has been supported by NSF Grant SES-1260876. An earlier version of this paper was circulated as "Airline Mergers and the Potential Entry Defense." Peichun Wang provided excellent research assistance during an early phase of the project. The usual disclaimer applies. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

The Welfare Consequences of Mergers with Endogenous Product Choice

“…Other applications includeLi et al [2018], which also considers discrete repositioning in the context of non-stop or connecting airline service, and the work byFan and Yang [2018] on product offering changes following mergers in the market for smartphones.© 2019 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd…”

Multiple Treatments with Strategic Interaction

“…Our first data source contains airline information and combines publicly available data from the Department of Transportation's Origin and Destination Survey (DB1B) and Domestic Segment (T-100) database. These datasets have been used extensively in the literature to analyze the airline industry (see, e.g., Borenstein (1989), Berry (1992), Ciliberto and Tamer (2009), and more recently, Li et al (2018) and Ciliberto et al (2018)). The DB1B database is a quarterly sample of all passenger domestic itineraries.…”

Does capital structure differently affect incumbents' responses to entry threat and actual entry?

“…Prince and Simon () studied the impact of merger on quality provision. Li, Mazur, Roberts, and Sweeting () studied the relation between mergers and new entries.…”