An Airline Merger and its Remedies: JAL-JAS of 2002

Naoshi Doi and Hiroshi Ohashi

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper investigates the economic impacts of the merger between Japan Airlines (JAL) and Japan Air System (JAS) in October 2002 and its remedial measures. This paper performs simulation analyses using an estimated structural model in which airlines set both fares and flight frequencies on each route in the domestic market. By comparing supply models, the hypothesis that the merger caused a collusion among airlines is rejected. The marginal-cost estimates for the merging airlines significantly declined primarily through the expansion of its domestic network. The simulation estimates suggest that, although the merger increased the total social surplus for all domestic routes by 6.8%, it increased fares and decreased consumer surplus on the JAL-JAS duopoly routes. This paper also evaluates remedial measures associated with the merger.

Pages: 60 pages
Date: 2015-08
New Economics Papers: this item is included in nep-com, nep-ind, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/15e100.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:15100

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().