Impact of high-speed rail on market concentration and Lerner index in China's airline market

Qiong Zhang, Hangjun Yang, Qiang Wang, Anming Zhang and Yahua Zhang

Journal of Air Transport Management, 2020, vol. 83, issue C

Abstract: China has become the second largest air transport market in the world since 2005. Its total length of high-speed rail (HSR) tracks in operation has been greater than that of all other countries combined since 2012. HSR poses a significant challenge to the Chinese airline industry, especially on major airline routes. The impacts of HSR on two market-competition measures, namely, the Herfindahl–Hirschman Index (HHI) and the Lerner index, are examined in this study. In general, the entry of HSR had the effect of reducing market power measured by both the unweighted and weighted Lerner indexes. However, the Lerner index and HHI of the routes with parallel HSR services remained consistently higher than those of the routes without parallel HSR services.

Keywords: Airline competition; High-speed rail; Lerner index; HHI (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:83:y:2020:i:c:s0969699718304344

DOI: 10.1016/j.jairtraman.2019.101755

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