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Competition and Quality: Evidence from High-Speed Railways and Airlines

Author

Listed:
  • Hanming Fang

    (University of Pennsylvania and the NBER)

  • Long Wang

    (Fudan University)

  • Yang Yang

    (The Chinese University of Hong Kong)

Abstract

The entry of High-Speed Railways (HSR) represents disruptive competition to airlines. Utilizing a unique dataset of all flights departing from Beijing to 113 domestic destinations in China since January 2009, we employ a difference-in-differences approach to examine the effects of HSR entry on on-time performance and to identify the channels. We document two main findings. First, the entry of HSR leads to significant reductions in the mean and variance of travel delays on the affected airline routes. Second, the reductions in departure delays and taxi-in times at the destination airports are identified as the main channels.

Suggested Citation

  • Hanming Fang & Long Wang & Yang Yang, 2025. "Competition and Quality: Evidence from High-Speed Railways and Airlines," The Review of Economics and Statistics, MIT Press, vol. 107(2), pages 494-509, March.
    • Handle: RePEc:tpr:restat:v:107:y:2025:i:2:p:494-509
    DOI: 10.1162/rest_a_01294
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