An Empirical Investigation Of The Competitive Effects Of Domestic Airline Alliances

This article reports on an empirical study of the competitive effects of two domestic airline alliances. The authors found that both alliances benefited consumers. Average fares fell by about 57 percent after the creation of the alliances on those city pairs affected by the alliances. Total traffic increased 6 percent after the creation of at least one of the alliances. The authors note that the average fare and traffic effects arise in part because the alliance partners' rivals respond to the increased competition from an alliance. Finally, the size of the alliance effect on average fares depends on the pre-alliance level of competition on a city pair, with the effect being larger on those city pairs where the level of competition was initially relatively low.

  • Availability:
  • Authors:
    • Bamberger, Gustavo E
    • Carlton, Dennis W
    • Neumann, Lynette R
  • Publication Date: 2004-4

Language

  • English

Media Info

  • Media Type: Print
  • Pagination: pp 195-222
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01010563
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 12 2005 6:57AM