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Huubinh B. Le
''A retrospective analysis of the competitive effects of the Southwest and Airtran merger in overlapping markets''
( 2016, Vol. 36 No.3 )
Since the implementation of the Southwest and Airtran merger in 2011, the competitive effects on routes most affected by the merger—overlapping routes—have not been evaluated. This paper attempts to empirically investigate the price and traffic effects on these routes. In addition, we test whether their effects depend on the extent of preexisting competition prior to the merger. The results suggest that prices increase but traffic remains unchanged. Preexisting competition has a decreasing effect on both price and traffic.
Keywords: Merger retrospective, Airlines
JEL: L9 - Industry Studies: Transportation and Utilities: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Sep 08 2015 Manuscript Accepted : Aug 24 2016

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