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A retrospective analysis of the competitive effects of the Southwest and Airtran merger in overlapping markets

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  • Huubinh B. Le

    (University of South Alabama)

Abstract

Since the implementation of the Southwest and Airtran merger in 2011, the competitive effects on routes most affected by the merger—overlapping routes—have not been evaluated. This paper attempts to empirically investigate the price and traffic effects on these routes. In addition, we test whether their effects depend on the extent of preexisting competition prior to the merger. The results suggest that prices increase but traffic remains unchanged. Preexisting competition

Suggested Citation

  • Huubinh B. Le, 2016. "A retrospective analysis of the competitive effects of the Southwest and Airtran merger in overlapping markets," Economics Bulletin, AccessEcon, vol. 36(3), pages 1650-1655.
    • Handle: RePEc:ebl:ecbull:eb-15-00596
    as

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    References listed on IDEAS

    as
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    6. Peters, Craig, 2006. "Evaluating the Performance of Merger Simulation: Evidence from the U.S. Airline Industry," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 627-649, October.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Merger retrospective; Airlines;

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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