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Network Structure and Consolidation in the U.S. Airline Industry, 1990-2015

Federico Ciliberto (), Emily Cook and Jonathan Williams

MPRA Paper from University Library of Munich, Germany

Abstract: We study the effect of consolidation on airline network connectivity using three measures of centrality from graph theory: Degree, Closeness, and Betweenness. Changes in these measures from 1990 to 2015 imply: i) the average airport services a greater proportion of possible routes, ii) the average origin airport is fewer stops away from any given destination, and iii) the average hub is less often along the shortest route between two other airports. Yet, we find the trend toward greater connectivity in the national network structure is largely unaffected by consolidation, in the form of mergers and codeshare agreements, during this period.

Keywords: Network; Consolidation; Airline; Connectivity; Merger; Codesharing (search for similar items in EconPapers)
JEL-codes: D85 L2 L4 L93 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-tre
Date: 2017
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Working Paper: Network Structure and Consolidation in the U.S. Airline Industry, 1990-2015 (2017) Downloads
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