1. Do horizontal mergers induce entry? Evidence from the US airline industry
- Author
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Patrice Bougette, Kai Hüschelrath, Kathrin Mueller, Groupe de Recherche en Droit, Economie et Gestion (GREDEG), Université Nice Sophia Antipolis (... - 2019) (UNS), COMUE Université Côte d'Azur (2015-2019) (COMUE UCA)-COMUE Université Côte d'Azur (2015-2019) (COMUE UCA)-Centre National de la Recherche Scientifique (CNRS)-Université Côte d'Azur (UCA), Zentrum für Europäische Wirtschaftsforschung (ZEW) (Centre for European Economic Research (Mannheim, Germany)), Universität Mannheim [Mannheim], MaCCI - Mannheim Centre for Competition and Innovation, and SRM
- Subjects
Economics and Econometrics ,Air transport ,05 social sciences ,Theoretical research ,jel:L40 ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Airline industry ,jel:K21 ,0502 economics and business ,Economics ,Relevance (information retrieval) ,Business ,Market power ,Airline industry,merger,entry-inducing effects ,050207 economics ,Industrial organization ,050205 econometrics ,entry-inducing effects ,merger - Abstract
International audience; 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 whether such an effect can be identified empirically. Our results show that both entry-inducing and entry-dissuading effects can be observed depending on the type of affected route and the carrier under investigation.
- Published
- 2013
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