Do horizontal mergers induce entry? Evidence from the US airline industry
AbstractTheoretical 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. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 13-030.
Date of creation: 2013
Date of revision:
Airline industry; merger; entry-inducing effects;
Other versions of this item:
- Patrice Bougette & Kai Hüschelrath & Kathrin Müller, 2014. "Do horizontal mergers induce entry? Evidence from the US airline industry," Applied Economics Letters, Taylor & Francis Journals, vol. 21(1), pages 31-34, January.
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-16 (All new papers)
- NEP-COM-2013-06-16 (Industrial Competition)
- NEP-IND-2013-06-16 (Industrial Organization)
- NEP-LAW-2013-06-16 (Law & Economics)
- NEP-TRE-2013-06-16 (Transport Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Horizontal mergers, entry, and efficiency defences,"
CEPREMAP Working Papers (Couverture Orange)
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- Cabral, Luis M. B., 2003.
"Horizontal mergers with free-entry: why cost efficiencies may be a weak defense and asset sales a poor remedy,"
International Journal of Industrial Organization,
Elsevier, vol. 21(5), pages 607-623, May.
- Luis M. B. Cabral, 2001. "Horizontal Mergers With Free-Entry: Why Cost Efficiencies May Be a Weak Defense and Asset Sales a Poor Remedy," Working Papers 01-05, New York University, Leonard N. Stern School of Business, Department of Economics.
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