Do Horizontal Mergers Induce Entry? Evidence from the U.S. Airline Industry

Patrice Bougette (), Kai Hüschelrath and Kathrin Müller
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Patrice Bougette: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur
Kai Hüschelrath: Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - University of Mannheim = Universität Mannheim, MaCCI - Mannheim Centre for Competition and Innovation
Authors registered in the RePEc Author Service: Kai Hueschelrath

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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.

Keywords: merger; Airline industry; entry-inducing effects (search for similar items in EconPapers)
Date: 2014
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Published in Applied Economics Letters, 2014, 21 (1), pp.31-34. ⟨10.1080/13504851.2013.835473⟩

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Related works:
Journal Article: Do horizontal mergers induce entry? Evidence from the US airline industry (2014)
Working Paper: Do horizontal mergers induce entry? Evidence from the US airline industry (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00859331

DOI: 10.1080/13504851.2013.835473

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