Domestic Airline Alliances And Consumer Welfare
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Domestic Airline Alliances and Consumer Welfare
Author | : Olivier Armantier |
Publisher | : |
Total Pages | : 0 |
Release | : 2011 |
Genre | : |
ISBN | : |
This paper investigates the consumer welfare consequences of the recent code-share agreement between Continental Airlines and Northwest Airlines. We develop a discrete choice model based on individual flight characteristics. This structural model recognizes that consumers i) may have heterogeneous preferences for flight attributes, and ii) may face different prices for the same flight. The empirical methodology also deals with the measurement error problem stemming from the absence of consumer level data on prices. The estimation results suggest that, while the code-share agreement did not impact consumers significantly on average, it increased the average surplus of connecting passengers, but it decreased the average surplus of nonstop passengers. Interestingly, the magnitude of our welfare results may be attributed in large part to changes in products characteristics other than prices.
Domestic Airline Alliances and Consumer Welfare
Author | : Olivier Armantier |
Publisher | : |
Total Pages | : 42 |
Release | : 2005 |
Genre | : Consumer protection |
ISBN | : |
Aviation Competition
Author | : John Hamilton Anderson |
Publisher | : |
Total Pages | : 22 |
Release | : 1998 |
Genre | : Aeronautics, Commercial |
ISBN | : |
Aviation Competition
Author | : United States. General Accounting Office |
Publisher | : |
Total Pages | : 70 |
Release | : 1999 |
Genre | : Airlines |
ISBN | : |
Us Domestic Airline Alliances
Author | : Joseph A. Clougherty |
Publisher | : |
Total Pages | : 0 |
Release | : 2000 |
Genre | : |
ISBN | : |
The six largest U.S. airlines announced in the beginning of 1998 the formation of three domestic alliances, but the size and scope of these alliances spurred significant public interest concerns. GAO analysis suggests a rough equivalence between the domestic costs and benefits of alliances, yet the international competitive effects have not been considered. I argue that the national welfare merits of domestic airline alliances turn on positive international competitive effects. Empirical tests - run on comprehensive panel data covering the international airline markets among 21 nations over the 1983-1992 period - support domestic market concentration resulting in strategic international gains; hence, domestic airline alliances likely improve national welfare.
An Empirical Investigation of the Competitive Effects of Domestic Airline Alliances
Author | : Gustavo Bamberger |
Publisher | : |
Total Pages | : 21 |
Release | : 2001 |
Genre | : Airlines |
ISBN | : |
In this paper, we investigate empirically the effect of two recent domestic airline alliances. We find that both alliances benefited consumers - average fares fell and total traffic increased after the creation of the alliances on those city pairs affected by the alliances. We also find that these effects are found both on city pairs where the alliance created one or two new online carriers, and on city pairs where the alliance increased the service offered by one or both alliance partners. Finally, we find that the size of the fare effect of the alliance depends on the pre-alliance level of competition on a city pair with the effect being larger on those city pairs where the level of competition was relatively low
Aviation Competition
Author | : United States Accounting Office (GAO) |
Publisher | : Createspace Independent Publishing Platform |
Total Pages | : 72 |
Release | : 2018-03-14 |
Genre | : |
ISBN | : 9781984397164 |
RCED-99-37 Aviation Competition: Effects on Consumers from Domestic Airline Alliances Vary
Aviation Competition
Author | : United States General Accounting Office |
Publisher | : |
Total Pages | : 68 |
Release | : 1999 |
Genre | : |
ISBN | : |