Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015

Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015 Rev Ind Organ https://doi.org/10.1007/s11151-018-9635-y Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015 1,3,4 1 2 Federico Ciliberto  · Emily E. Cook  · Jonathan W. Williams © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract We study the effect of consolidation on airline network connectiv - ity using three measures of centrality from graph theory: Degree; Closeness; and Betweenness. Changes in these measures from 1990 to 2015 imply: (i) the average airport services a greater proportion of possible routes; (ii) the average origin airport is fewer stops away from any given destination; and (iii) the average hub is less often along the shortest route between two other airports. Yet, we find the trend toward greater connectivity in the national network structure is largely unaffected by con - solidation—in the form of mergers and codeshare agreements—during this period. Keywords Network · Airlines · Consolidation · Mergers · Codeshare agreements · Airports * Federico Ciliberto ciliberto@virginia.edu Emily E. Cook emilycook@virginia.edu Jonathan W. Williams jonwms@unc.edu Department of Economics, University of Virginia, Charlottesville, USA Department of Economics, University of North Carolina, Chapel Hill, USA The Center for Economic and Policy Research, London, United Kingdom DIW, Berlin, Germany 1 3 F. Ciliberto et al. 1 Introduction Forty years after its deregulation, the airline industry continues to be the focus of research, antitrust cases, http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015

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Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer Science+Business Media, LLC, part of Springer Nature
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-018-9635-y
Publisher site
See Article on Publisher Site

Abstract

Rev Ind Organ https://doi.org/10.1007/s11151-018-9635-y Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015 1,3,4 1 2 Federico Ciliberto  · Emily E. Cook  · Jonathan W. Williams © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract We study the effect of consolidation on airline network connectiv - ity using three measures of centrality from graph theory: Degree; Closeness; and Betweenness. Changes in these measures from 1990 to 2015 imply: (i) the average airport services a greater proportion of possible routes; (ii) the average origin airport is fewer stops away from any given destination; and (iii) the average hub is less often along the shortest route between two other airports. Yet, we find the trend toward greater connectivity in the national network structure is largely unaffected by con - solidation—in the form of mergers and codeshare agreements—during this period. Keywords Network · Airlines · Consolidation · Mergers · Codeshare agreements · Airports * Federico Ciliberto ciliberto@virginia.edu Emily E. Cook emilycook@virginia.edu Jonathan W. Williams jonwms@unc.edu Department of Economics, University of Virginia, Charlottesville, USA Department of Economics, University of North Carolina, Chapel Hill, USA The Center for Economic and Policy Research, London, United Kingdom DIW, Berlin, Germany 1 3 F. Ciliberto et al. 1 Introduction Forty years after its deregulation, the airline industry continues to be the focus of research, antitrust cases,

Journal

Review of Industrial OrganizationSpringer Journals

Published: May 31, 2018

References

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