An Empirical Analysis of the Competitive Effects of the Delta/Continental/Northwest Code-Share Alliance

Philip G. Gayle

Journal of Law & Economics, 2008, vol. 51, issue 4, pages 743-766

Abstract: The U.S. Department of Transportation (DOT) expressed serious reservations before ultimately approving the Delta/Continental/Northwest code-share alliance. The DOT's main fear was that the alliance could facilitate collusion (explicit or tacit) on prices and/or service levels in the partners' overlapping markets. However, since implementation of the alliance, there has not been a formal empirical analysis of its effects on price and traffic (number of passengers) levels. The main objective of this paper is to conduct such an analysis with a particular focus on testing whether the data are consistent with collusive behavior by the three airlines. The evidence does not suggest that the alliance facilitated collusion on the partners' overlapping routes. (c) 2008 by The University of Chicago. All rights reserved..

Date: 2008

Downloads: (external link)
http://www.journals.uchicago.edu/doi/pdf/10.1086/595865 link to full text (text/html)
Access to full text is restricted to subscribers.

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: http://EconPapers.repec.org/RePEc:ucp:jlawec:v:51:y:2008:i:4:p:743-766

Ordering information: This journal article can be ordered from
http://www.journals.uchicago.edu/JLE/order1.html

Access Statistics for this article

Journal of Law & Economics is edited by Dennis W. Carlton, Austan Goolsbee, Randall S. Krosner, Douglas Lichtman and Edward A. Snyder

More articles in Journal of Law & Economics from University of Chicago Press
Address: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637
Series data maintained by Christopher F. Baum ().