Merger Analysis

Repositioning and Market Power After Airline Mergers

We estimate a model of airline route competition in which carriers first choose whether to offer nonstop or connecting service and then choose prices. Carriers have full information about quality and marginal cost unobservables throughout the game, …

Examining the Coordinated Effects of the AA/USAir Merger

This paper studies the coordinated effects of the merger between American Airlines and US Airways by examining the extent to which the connecting prices of the nonmerging legacy carriers (Delta and United) evolved when the merger eliminated Advantage …

Structural Remedies in Network Industries: An Assessment of Slot Divestitures in the American Airlines/US Airways Merger

Asset divestitures are often negotiated to alleviate anticompetitive concerns created by horizontal mergers. I develop a structural model to evaluate the effectiveness of alternative slot divestiture schemes in the US airline industry, focusing on …

The Impact of Airline Mergers on Environmental Externalities

The U.S. airline industry has experienced consolidation in the last decade. At the same time, global environmental concerns have continued to grow. This paper examines the impact of three recent airline mergers on the environment by comparing …