Impacts of airline mergers on passenger welfare

Since 2005, the US airline industry has undergone a series of consolidations. The authors provide a comprehensive assessment of the overall effects of five major recent mergers on passengers’ welfare. They compute consumer surplus changes using passenger discrete choice models based on the attributes of airlines and routes. They then evaluate these changes, as well as changes in frequency and fare, using a difference-in-differences approach. The authors' major findings include large consumer welfare gains following the DL-NW and UA-CO mergers, welfare gains in regions dominated by the larger carrier in the merger, and welfare losses in highly concentrated markets following legacy mergers.

• Record URL:
  https://doi.org/10.1016/j.tre.2017.03.005
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S1366554516305476
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Vaze, Vikrant
  • Luo, Tian
  • Harder, Reed
• Publication Date: 2017-5

Language

• English

Media Info

• Media Type: Web
• Features: Figures; References; Tables;
• Pagination: pp 130-154
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 101
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Airlines; Choice models; Mergers; Multinomial logits; Passengers
• Subject Areas: Administration and Management; Aviation; Passenger Transportation;

Filing Info

• Accession Number: 01634211
• Record Type: Publication
• Files: TRIS
• Created Date: May 1 2017 9:45AM