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Concentration and price trends in the US domestic airline industry: 1990–2000

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  • Lee, Darin

Abstract

This paper analyzes concentration and price changes in the US domestic airline industry throughout the 1990s. In general, we find that national measures of concentration remained relatively flat throughout the 1990s while overall airline prices fell significantly in real terms. These findings tend to suggest that concerns of increasing concentration and rising prices such as those by Brock (Review of Industrial Organization 16 (2000) 41–51) are largely unfounded.

Suggested Citation

  • Lee, Darin, 2003. "Concentration and price trends in the US domestic airline industry: 1990–2000," Journal of Air Transport Management, Elsevier, vol. 9(2), pages 91-101.
    • Handle: RePEc:eee:jaitra:v:9:y:2003:i:2:p:91-101
    DOI: 10.1016/S0969-6997(02)00046-7
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    References listed on IDEAS

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    1. Severin Borenstein, 1992. "The Evolution of U.S. Airline Competition," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 45-73, Spring.
    2. Brueckner, Jan K & Whalen, W Tom, 2000. "The Price Effects of International Airline Alliances," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 503-545, October.
    3. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
    4. Jong-Hun Park & Anming Zhang, 2000. "An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(4), pages 367-384, June.
    5. James Brock, 2000. "Industry Update: Airlines," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 39-51, February.
    6. Evans, William N & Kessides, Ioannis N, 1993. "Localized Market Power in the U.S. Airline Industry," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 66-75, February.
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    Cited by:

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    2. Zhang, Qiong & Yang, Hangjun & Wang, Qiang & Zhang, Anming & Zhang, Yahua, 2020. "Impact of high-speed rail on market concentration and Lerner index in China's airline market," Journal of Air Transport Management, Elsevier, vol. 83(C).
    3. Bhadra, Dipasis & Kee, Jacqueline, 2008. "Structure and dynamics of the core US air travel markets: A basic empirical analysis of domestic passenger demand," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 27-39.
    4. Grosche, Tobias & Rothlauf, Franz & Heinzl, Armin, 2007. "Gravity models for airline passenger volume estimation," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 175-183.
    5. Oliveira, Renan P. & Oliveira, Alessandro V.M. & Lohmann, Gui & Bettini, Humberto F.A.J., 2020. "The geographic concentrations of air traffic and economic development: A spatiotemporal analysis of their association and decoupling in Brazil," Journal of Transport Geography, Elsevier, vol. 87(C).

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