Code Sharing and Merger: Continental, Delta and Northwest

doi:10.3868/s060-004-015-0030-5

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	Code Sharing and Merger: Continental, Delta and Northwest
	Shen, Caixia
刊名	FRONTIERS OF ECONOMICS IN CHINA
	2015-12
卷号	10 期号:4 页码:643-663
关键词	airline code sharing regulation demand estimation
ISSN号	1673-3444
DOI	10.3868/s060-004-015-0030-5
英文摘要	When Delta joined the code share between Continental and Northwest in 2003, these three legacy carriers formed the only three-way U.S. domestic code sharing partnership. In 2008, Delta and Northwest announced their intention to merge. The merger was granted by the Department of Justice six months later. This paper analyzes the effects of the three-way code share and the effects of the merger between these two previous code sharing partners. I find both competitive effects and anti-competitive effects of code sharing, i.e., mean market price decrease in non-hub markets and price increase in hub-to-hub markets. Meanwhile, passenger volume increases significantly. Moreover, rivals' responses are to move price in the same direction as code sharing partners. I find an increase in Herfindahl-Hirschman Index (HHI) and a reduction in traffic after the merger. Specifically, HHI increases for over 1,000 points in markets where merging airlines were either duopolistic or with a third carrier. Pre-merger code sharing markets experience an increase in HHI due to the disappearance of the code sharing contract. Low cost carrier entry mitigates merger effects.
WOS研究方向	Business & Economics
语种	英语
出版者	SPRINGER
WOS记录号	WOS:000373137900006
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1412]
专题	上海财经大学
通讯作者	Shen, Caixia
作者单位	Shanghai Univ Finance & Econ, Sch Int Business & Econ, Shanghai 200433, Peoples R China
推荐引用方式 GB/T 7714	Shen, Caixia. Code Sharing and Merger: Continental, Delta and Northwest[J]. FRONTIERS OF ECONOMICS IN CHINA,2015,10(4):643-663.
APA	Shen, Caixia.(2015).Code Sharing and Merger: Continental, Delta and Northwest.FRONTIERS OF ECONOMICS IN CHINA,10(4),643-663.
MLA	Shen, Caixia."Code Sharing and Merger: Continental, Delta and Northwest".FRONTIERS OF ECONOMICS IN CHINA 10.4(2015):643-663.