Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74535
Authors: 
Hüschelrath, Kai
Müller, Kathrin
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers 13-028
Abstract: 
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.
Subjects: 
Airline industry
merger
market power
consumer welfare
price effects
JEL: 
L40
L93
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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