The effects of airline alliances: What do the aggregate data say?
We consider an empirical model of worldwide airline alliances that we apply to a large set of companies for the period 1995-2000. Using observations at the network level, we estimate a cost, capacity, and demand system that accounts for cross-price elasticities. Our contribution consists in evaluating airlines' strategical interactions through the window of firms' network interconnections. We consider networks coincidences and potential connections with all their rivals. The results allow us to classify all company pairs as either complements or substitutes. We shed light on the fact that many airlines involved in the same alliance are potential substitutes.
|Date of creation:||2010|
|Date of revision:|
|Publication status:||Published, SERIES Journal of the Spanish Economic Association, 2010, 1, 251-276|
|Note:||View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00622831|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/ |
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.:
- Gustavo E. Bamberger & Dennis W. Carlton & Lynette R. Neumann, 2001.
"An Empirical Investigation of the Competitive Effects of Domestic Airline Alliances,"
NBER Working Papers
8197, National Bureau of Economic Research, Inc.
- Bamberger, Gustavo E & Carlton, Dennis W & Neumann, Lynette R, 2004. "An Empirical Investigation of the Competitive Effects of Domestic Airline Alliances," Journal of Law and Economics, University of Chicago Press, vol. 47(1), pages 195-222, April.
- Roller, Lars-Hendrik & Sickles, Robin C., 2000.
"Capacity and product market competition: measuring market power in a 'puppy-dog' industry,"
International Journal of Industrial Organization,
Elsevier, vol. 18(6), pages 845-865, August.
- Lars-Hendrik Röller & Robin C. Sickles, 1997. "Capacity and Product Market Competition: Measuring Market Power in a "Puppy-Dog" Industry," CIG Working Papers FS IV 97-31, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Damien J. Neven & Lars-Hendrik RÃ¶ller & Zhentang Zhang, 2002. "Endogenous Costs and Price-Cost Margins," Discussion Papers of DIW Berlin 294, DIW Berlin, German Institute for Economic Research.
- Philippe Gagnepain & Pedro Marin, 2006. "Regulation and Incentives in European Aviation," Post-Print hal-00622844, HAL.
- David Genesove & Wallace P. Mullin, 1998. "Testing Static Oligopoly Models: Conduct and Cost in the Sugar Industry, 1890-1914," RAND Journal of Economics, The RAND Corporation, vol. 29(2), pages 355-377, Summer.
- Good, David H & Roller, Lars-Hendrik & Sickles, Robin C, 1993. "U.S. Airline Deregulation: Implications for European Transport," Economic Journal, Royal Economic Society, vol. 103(419), pages 1028-41, July.
- Neven, Damien J. & Roller, Lars-Hendrik, 1996. "Rent sharing in the European airline industry," European Economic Review, Elsevier, vol. 40(3-5), pages 933-940, April.
- Gagnepain, Philippe & Marin, Pedro L, 2006.
"Regulation and Incentives in European Aviation,"
Journal of Law and Economics,
University of Chicago Press, vol. 49(1), pages 229-48, April.
- Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
- Jaumandreu, Jordi & Lorences, Joaquin, 2002. "Modelling price competition across many markets (An application to the Spanish loans market)," European Economic Review, Elsevier, vol. 46(1), pages 93-115, January.
- Oum, Tae Hoon & Park, Jong-Hun, 1997. "Airline alliances: current status, policy issues, and future directions," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 133-144.
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:hal-00622831. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.