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Did the Airline Tariff Publishing Case Reduce Collusion?

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  • Amalia R. Miller

Abstract

In December 1992, the U.S. Department of Justice filed suit against eight major domestic airlines and the Airline Tariff Publishing (ATP) Company in order to reduce opportunities for collusion in the industry. The lawsuit ended with consent decrees limiting the ability of airlines to communicate surreptitiously through the shared fare database. This paper measures the effects of the litigation and its settlement on industry performance, comparing changes in outcomes between market segments that were more and less likely to be affected by the ATP case. Prices fell in response to the investigation but increased following the settlement, while the number of tickets sold in affected markets declined. The importance of multimarket contact also declined and then recovered. The ATP case had at best a temporary effect on airline collusion.

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File URL: http://www.jstor.org/stable/pdfplus/10.1086/605294
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File URL: http://www.jstor.org/stable/full/10.1086/605294
Download Restriction: Access to the online full text or PDF requires a subscription.

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Bibliographic Info

Article provided by University of Chicago Press in its journal The Journal of Law and Economics.

Volume (Year): 53 (2010)
Issue (Month): 3 ()
Pages: 569 - 586

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Handle: RePEc:ucp:jlawec:doi:10.1086/605294

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Web page: http://www.journals.uchicago.edu/JLE/

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Cited by:
  1. Jan K. Brueckner & Pierre M. Picard, 2011. "Airline Alliances, Carve-Outs and Collusion," CESifo Working Paper Series 3593, CESifo Group Munich.
  2. Ciliberto, Federico & Williams, Jonathan, 2010. "Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conjectural Parameters in the Airline Industry," MPRA Paper 24888, University Library of Munich, Germany.
  3. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.

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