Price Effects of Airline Mergers Through Network Changes
Hoffman, Grant
Hoffman, Grant
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Abstract
This paper extends the models proposed in Hüschelrath and Müller (2014) and Brueckner et al. (1992) to analyze the effects of the Northwestern-Delta Airlines Merger of 2010 on airfares. The model proposed in this paper will test for the price effects of eigenvector centrality and market share as a merger is completed. Network centrality effects economies of density and indicates a negative relationship with price. The differences-in-differences regression with route and time fixed effects indicates eigenvector centrality and market share variables show decreases in prices as airports become more central
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2023-01-01
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Undergraduate
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Economics
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College of Arts and Sciences
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Social Science