Open Access. Powered by Scholars. Published by Universities.®
- Discipline
- Institution
- Publication
- Publication Type
- File Type
Articles 1 - 5 of 5
Full-Text Articles in Industrial Organization
Antitrust Implications For Mergers Involving Maverick Firms, Alexander Mcglothlin
Antitrust Implications For Mergers Involving Maverick Firms, Alexander Mcglothlin
Theses and Dissertations--Economics
Maverick firms are defined in the Horizontal Merger Guidelines as those firms that may exert a disproportional competitive effect in markets where they compete. The Guidelines mandate that mergers and acquisitions involving maverick firms be given special consideration by the Agencies, however not much is known about maverick firms or their competitive effects when they are acquired. The Guidelines describe characteristics that may be present in a maverick firm, but stop short of providing a discrete test that may be used for their identification. They are often small firms whose acquisitions do not warrant reporting to the Agencies due to …
Institutional Setting And Carrier Viability In The Airline Industry: A Continuing Review Of The Post-Deregulation Experience, Sean W. Sullivan
Institutional Setting And Carrier Viability In The Airline Industry: A Continuing Review Of The Post-Deregulation Experience, Sean W. Sullivan
Chancellor’s Honors Program Projects
No abstract provided.
Modeling The Effects Of Wage Premiums On Airline Competition Under Asymmetric Economies Of Density: A Case Study From Brazil, Alessandro V. M. Oliveira, Lucia Helena Salgado, Cícero R. Melo Filho, Renato C. Sato
Modeling The Effects Of Wage Premiums On Airline Competition Under Asymmetric Economies Of Density: A Case Study From Brazil, Alessandro V. M. Oliveira, Lucia Helena Salgado, Cícero R. Melo Filho, Renato C. Sato
Alessandro V. M. Oliveira
This paper investigates the effects of wage premiums on the competition between Full Service Carriers (FSC) and Low Fare Carriers (LFC) in the airline industry. We study the impact of changes in the labor market and the resulting effects on performance in the product market and examine the role of economies of density. We develop an oligopoly model of airline competition with endogenous wages and simulate increases in labor costs. We apply the model to the case of the most important domestic route of Brazil using airline/route-specific demand and costs data. Our chief contribution relies on the empirical model of …
Price Effects And Switching Costs Of Airlines Frequent Flyer Program, Claudio A. Agostini, Manuel Willington
Price Effects And Switching Costs Of Airlines Frequent Flyer Program, Claudio A. Agostini, Manuel Willington
Claudio A. Agostini
Frequent flier programs create a switching cost for the consumer and allow firms to exercise market power. In Chile there is a dominant airline in domestic markets that has a frequent flyer program with a large number of affiliates and it faces some competition from two small carriers that do have a frequent flyer program. Using a unique dataset for Chile we estimate the switching cost of each airline and the impact of the dominant airline frequent flyer program on prices. The results show a fare premium of around 18% due to the frequent flyer program.
Price Discrimination Through Refund Contracts In Airlines, Diego Escobari, Paan Jindapon
Price Discrimination Through Refund Contracts In Airlines, Diego Escobari, Paan Jindapon
Paan Jindapon
This paper shows how an airline monopoly uses refundable and non-refundable tickets to screen consumers who are uncertain about their travel. Our theoretical model predicts that the difference between these two fares diminishes as individual demand uncertainty is resolved. Using an original data set from U.S. airline markets, we find strong evidence supporting our model. Price-discrimination opportunities through refund contracts decline as the departure date nears and individuals learn about their demand.