Author, as appears in the article.: Fageda X; Flores-Fillol R; Lin M
Department: Economia
URV's Author/s: Flores Fillol, Ricardo
Keywords: Vertical differentiation Quality Price-competition Networks Mergers Markets International airfares Double marginalization Congestion Carriers Antitrust immunity Alliance Airport congestion Agreements
Abstract: © 2020 Elsevier B.V. This paper explores the impact of granting antitrust immunity (ATI) to airline alliances in a novel and realistic framework characterized by vertically-differentiated air services. Our theoretical model suggests that non-ATI alliances result in higher quality services at higher fares, whereas granting ATI produces the opposite effect. Using data on the transatlantic market over the period 2010–2017, our theoretical findings on service quality are empirically confirmed. We also relate our theoretical predictions on fares to the empirical results in Brueckner and Singer (2019). Our results indicate that alliances (ATI and non-ATI) concentrate a higher proportion of frequencies on high-quality routings, although airport congestion could mitigate this effect.
Thematic Areas: Urban studies Human geography and urban studies Geografia i urbanisme Geografía Environmental studies Economics and econometrics Economics Economia Ciencias sociales Business and management
ISSN: 01660462
Author's mail: ricardo.flores@urv.cat
Author identifier: 0000-0002-3506-1634
Record's date: 2024-07-27
Papper version: info:eu-repo/semantics/acceptedVersion
Link to the original source: https://www.sciencedirect.com/science/article/abs/pii/S0166046219302479
Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
Papper original source: Regional Science And Urban Economics. 81 (103517):
APA: Fageda X; Flores-Fillol R; Lin M (2020). Vertical differentiation and airline alliances: The effect of antitrust immunity. Regional Science And Urban Economics, 81(103517), -. DOI: https://doi.org/10.1016/j.regsciurbeco.2020.103517
Article's DOI: https://doi.org/10.1016/j.regsciurbeco.2020.103517
Entity: Universitat Rovira i Virgili
Journal publication year: 2020
Publication Type: Journal Publications
Repositori URV