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Title:The competitive effects of firm exit: Evidence from the US airline industry PDF Logo
Authors:Hüschelrath, Kai
Müller, Kathrin
Issue Date:2012
Series/Report no.:ZEW Discussion Papers 12-037
Abstract: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.
Subjects:airline industry
exit
liquidation
merger
efficiencies
entry-inducing effects
Persistent Identifier of the first edition:urn:nbn:de:bsz:180-madoc-323197
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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