Evaluating the price effects of two airline mergers in China
Article
Article Title | Evaluating the price effects of two airline mergers in China |
---|---|
ERA Journal ID | 4301 |
Article Category | Article |
Authors | Ma, Wenliang (Author), Wang, Qiang (Author), Yang, Hangjun (Author) and Zhang, Yahua (Author) |
Journal Title | Transportation Research Part E: Logistics and Transportation Review |
Journal Citation | 141, pp. 1-21 |
Article Number | 102030 |
Number of Pages | 21 |
Year | 2020 |
Place of Publication | United Kingdom |
ISSN | 1366-5545 |
1878-5794 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.tre.2020.102030 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S1366554520306815 |
Abstract | This paper compares the price effects of two influential airline mergers taking place in China in 2010. We offer the first comparative analysis of two different types of airline mergers in the Chinese airline market: a parallel merger and a complementary merger. With a difference-in-differences approach, we found that the two types of mergers resulted in similar pricing patterns for the airlines involved in the mergers, suggesting that complementary mergers could also confer an increase in market power. It has been found that the negative impact of high-speed rail on fares gradually weakened after the mergers. |
Keywords | Airline merger; Price effect; Comparative analysis; High-speed rail; Overlapping network; Complementary network |
ANZSRC Field of Research 2020 | 350901. Air transportation and freight services |
380117. Transport economics | |
Byline Affiliations | Capital University of Economics and Business, China |
University of International Business and Economics, China | |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q5w5x/evaluating-the-price-effects-of-two-airline-mergers-in-china
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