Collude, Compete, or Both? Deregulation in the Norwegian Airline Industry

Kjell G Salvanes, Frode Steen and Lars Sørgard

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: The purpose of this paper is to test the nature of competition concerning price and capacity setting in the Norwegian airline industry after the deregulation in 1994. Did the two airlines, SAS and Braathens, compete on prices and capacities (competition), collude on prices and capacities (collusion) or collude on prices and compete on capacities (semicollusion)? We reject the hypothesis that they achieved collusion, and we find the observed behaviour consistent with semicollusive behaviour and inconsistent with competitive behaviour.

Keywords: DEREGULATION; MARKET STRUCTURE; ECONOMETRICS; COMPETITION (search for similar items in EconPapers)
JEL-codes: C23 D43 L13 L93 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1998
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Citations: View citations in EconPapers (2)

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Journal Article: Collude, Compete, or Both? Deregulation in the Norwegian Airline Industry (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:18/98

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