Airline networks, mergers, and consumer welfare

Arbeitspapier

We study the consumer welfare effects of mergers in airline networks. Based on the development of a general classification of affected routes, we apply a difference-indifferences approach to exemplarily investigate the price effects of the America West Airlines - US Airways merger completed in 2005. We find that although average prices increased substantially on routes in which both airlines competed either on a non-stop or one-stop basis prior to the merger, substantial average price reductions observed for routes without any premerger overlap suggest that the merger led to a net increase in consumer welfare.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 13-028

Classification and Topics

• Classification: Wirtschaft ; Antitrust Issues and Policies: General ; Air Transportation
• Subject: Airline industry ; merger ; market power ; consumer welfare ; price effects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hüschelrath, Kai ; Müller, Kathrin
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/74535
• URN: urn:nbn:de:bsz:180-madoc-337141
• Last update: 10.03.2025, 11:43 AM CET