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

Patrice Bougette, Kai H�schelrath and Kathrin M�ller
Authors registered in the RePEc Author Service: Kathrin Müller and Kai Hueschelrath

Applied Economics Letters, 2014, vol. 21, issue 1, 31-34

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.

Date: 2014
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Working Paper: Do Horizontal Mergers Induce Entry? Evidence from the U.S. Airline Industry (2014)
Working Paper: Do horizontal mergers induce entry? Evidence from the US airline industry (2013)
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DOI: 10.1080/13504851.2013.835473

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