The international drivers of domestic airline mergers in twenty nations: Integrating industrial organization and international business

Research output: Contribution to journalReview articlepeer-review

Abstract

The domestic airline merger phenomenon of the late 1980s and early 1990s sparked a great deal of Industrial Organization (IO) literature; yet, that literature neglected non-US domestic mergers and potential for international competitive gains. Using an International Business perspective to complement an IO analysis, I argue that factoring international competitive incentives helps explain domestic airline merger activity. A Cournot model of airline competition illustrates that domestic mergers, via enhanced domestic networks and reduced domestic competition, generate international competitive gains. Further, empirical tests - using a structural equations approach on panel data covering international city-pair market segments - support domestic mergers improving international competitiveness.

Original languageEnglish (US)
Pages (from-to)75-93
Number of pages19
JournalManagerial and Decision Economics
Volume27
Issue number1
DOIs
StatePublished - Jan 2006
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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