Evaluating the price effects of two airline mergers in China

Wenliang Ma, Qiang Wang, Hangjun Yang and Yahua Zhang

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 141, issue C

Abstract: This paper compares the price effects of two influential airline mergers taking place in China in 2010. We offer the first comparative analysis of two different types of airline mergers in the Chinese airline market: a parallel merger and a complementary merger. With a difference-in-differences approach, we found that the two types of mergers resulted in similar pricing patterns for the airlines involved in the mergers, suggesting that complementary mergers could also confer an increase in market power. It has been found that the negative impact of high-speed rail on fares gradually weakened after the mergers.

Keywords: Airline merger; Price effect; Comparative analysis; High-speed rail; Overlapping network; Complementary network (search for similar items in EconPapers)
JEL-codes: L13 L93 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tre.2020.102030

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