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A retrospective analysis of the competitive effects of the Southwest and Airtran merger in overlapping markets

Huubinh Le ()
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Huubinh Le: University of South Alabama

Economics Bulletin, 2016, vol. 36, issue 3, 1650-1655

Abstract: Since the implementation of the Southwest and Airtran merger in 2011, the competitive effects on routes most affected by the merger—overlapping routes—have not been evaluated. This paper attempts to empirically investigate the price and traffic effects on these routes. In addition, we test whether their effects depend on the extent of preexisting competition prior to the merger. The results suggest that prices increase but traffic remains unchanged. Preexisting competition

Keywords: Merger retrospective; Airlines (search for similar items in EconPapers)
JEL-codes: L1 L9 (search for similar items in EconPapers)
Date: 2016-08-24
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