Do horizontal mergers induce entry? Evidence from the US airline industry

Patrice Bougette, Kai Hüschelrath and Kathrin Müller

No 13-030, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Theoretical research has investigated the relevance of entry-inducing effects as countervailing factor to a merger-related increase in market power. We use route-level data for the America West Airlines - US Airways merger (2005) to investigate whether such an effect can be identified empirically. Our results show that both entry-inducing and entry-dissuading effects can be observed depending on the type of affected route and the carrier under investigation.

Keywords: Airline industry; merger; entry-inducing effects (search for similar items in EconPapers)
JEL-codes: K21 L40 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-com, nep-ind, nep-law and nep-tre
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https://www.econstor.eu/bitstream/10419/74536/1/74729304X.pdf (application/pdf)

Related works:
Journal Article: Do horizontal mergers induce entry? Evidence from the US airline industry (2014)
Working Paper: Do Horizontal Mergers Induce Entry? Evidence from the U.S. Airline Industry (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:13030

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