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| Author: | Richard, O. |
| Title: | Flight frequency and mergers in airline markets |
| Journal: | International Journal of Industrial Organization
2003 : JUN, VOL. 21:6, p. 907-922 |
| Index terms: | Mergers Airlines Aircraft industry Consumer satisfaction Prices |
| Language: | eng |
| Abstract: | The welfare consquences of airline mergers have been analyzed almost exclusively in terms of ticket price. However, when flight frequency decisions are endogenized in a model, the authos can estimate measures of the relative importance of price and flight frequency in customer decisions. Hence, in a merger analysis, they can not only predict changes in flight frequency, but also the consequences of those changes on consumer welfare. In this paper, merger simulations suggest that while passenger volume and consumer surplus decrease on the aggregate, some markets benefit from welfare gains once merger-induced changes in flight frequency are factored in. |
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