US domestic airline mergers: The neglected international determinants

Research output: Contribution to journalArticlepeer-review

Abstract

The existing literature on domestic-airline mergers focuses on domestic competitive incentives determining merger behavior and neglects the impact of international competitive incentives. I argue that domestic airline mergers increase international efficiency - via the enhancement of domestic networks and the elimination of domestic competition - which correspondingly leads to an improved international competitive position. Comprehensive panel data - covering international airline markets between the US and twenty nations over the 1984-1992 period - allows testing this argument. The results support both domestic mergers and large domestic networks improving the international competitive position of airlines.

Original languageEnglish (US)
Pages (from-to)557-576
Number of pages20
JournalInternational Journal of Industrial Organization
Volume20
Issue number4
DOIs
StatePublished - Apr 2002
Externally publishedYes

Keywords

  • Airlines
  • Imperfect-competition
  • International
  • Mergers
  • Networks

ASJC Scopus subject areas

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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