Arbeitspapier
The competitive effects of firm exit: Evidence from the US airline industry
We study the competitive effects of five liquidations and six mergers in the domestic U.S. airline industry between 1995 and 2010. Applying fixed effects regression models we find that route exits due to liquidation lead to substantially larger price increases than mergerrelated exits. Within the merger category, our analysis reveals significant price increases on all affected routes immediately after the exit events. In the medium and long-run, however, realized merger efficiencies and entry-inducing effects are found to be strong enough to drive prices down to pre-exit levels.
- Language
-
Englisch
- Bibliographic citation
-
Series: ZEW Discussion Papers ; No. 12-037
- Classification
-
Wirtschaft
- Subject
-
airline industry
exit
liquidation
merger
efficiencies
entry-inducing effects
Luftverkehrsgesellschaft
Marktaustritt
Liquidation
Fusion
Luftverkehr
Wettbewerb
Preis
Schätzung
USA
- Event
-
Geistige Schöpfung
- (who)
-
Hüschelrath, Kai
Müller, Kathrin
- Event
-
Veröffentlichung
- (who)
-
Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (where)
-
Mannheim
- (when)
-
2012
- Handle
- URN
-
urn:nbn:de:bsz:180-madoc-323197
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hüschelrath, Kai
- Müller, Kathrin
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Time of origin
- 2012
Other Objects (12)
The competitive effects of firm exit: evidence from the U.S. airline industry
Firm exit during recessions
Hedging and the Regret Theory of the Competitive Firm
Hedging and the regret theory of the competitive firm
The Cultural Roots of Firm Entry, Exit, and Growth
Firm Entry and Exit in the Canadian Manufacturing Sector
Does firm exit raise prices?
How does the competitive intensity affect the firm's product strategies?
Common ownership does not have anti-competitive effects in the airline industry
Firm-level entry and exit over the Danish business cycle
Ecosystems in the Business Environment : Investigating Competitive Advantages of the Firm
Firm Competitive Strategies and the Likelihood of Survival. The Spanish Case
The competitive effects of firm exit: evidence from the U.S. airline industry
Firm exit during recessions
Hedging and the Regret Theory of the Competitive Firm
Hedging and the regret theory of the competitive firm
The Cultural Roots of Firm Entry, Exit, and Growth
Firm Entry and Exit in the Canadian Manufacturing Sector
Does firm exit raise prices?
How does the competitive intensity affect the firm's product strategies?
Common ownership does not have anti-competitive effects in the airline industry
Firm-level entry and exit over the Danish business cycle
Ecosystems in the Business Environment : Investigating Competitive Advantages of the Firm
Firm Competitive Strategies and the Likelihood of Survival. The Spanish Case
The competitive effects of firm exit: evidence from the U.S. airline industry
Firm exit during recessions
Hedging and the Regret Theory of the Competitive Firm
Hedging and the regret theory of the competitive firm
The Cultural Roots of Firm Entry, Exit, and Growth
Firm Entry and Exit in the Canadian Manufacturing Sector
Does firm exit raise prices?
How does the competitive intensity affect the firm's product strategies?
Common ownership does not have anti-competitive effects in the airline industry
Firm-level entry and exit over the Danish business cycle
Ecosystems in the Business Environment : Investigating Competitive Advantages of the Firm