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Collude, Compete, or Both? Deregulation in the Norwegian Airline Industry

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Author Info
Salvanes, K.G.
Steen, F.
Sorgard, L.

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Abstract

The purpose of this paper is to test the nature of competition concerning price and capacity setting in the Norwegian airline industry after the deregulation in 1994. Did the two airlines, SAS and Braathens, compete on prices and capacities (competition), collude on prices and capacities (collusion) or collude on prices and compete on capacities (semicollusion)? We reject the hypothesis that they achieved collusion, and we find the observed behaviour consistent with semicollusive behaviour and inconsistent with competitive behaviour.

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Publisher Info
Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 18/98.

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Length: 30 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:norgee:18/98

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Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
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Web page: http://www.nhh.no/
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Related research
Keywords: DEREGULATION ; MARKET STRUCTURE ; ECONOMETRICS ; COMPETITION;

Other versions of this item:

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

Cited by:
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  1. Markku Stenborg, 2004. "Forest for the Trees: Economics of Joint Dominance," European Journal of Law and Economics, Springer, vol. 18(3), pages 365-385, December. [Downloadable!] (restricted)
  2. Markku Stenborg, 2002. "Economics of Joint Dominance," Discussion Papers 834, The Research Institute of the Finnish Economy. [Downloadable!]
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This page was last updated on 2009-11-20.

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