Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Price Effects of the Delta/Northwest Airline Merger

The Price Effects of the Delta/Northwest Airline Merger This paper examines the price effects of the merger between Delta Airlines and Northwest Airlines. Empirical analysis finds that, other things equal, the fares for airport-pairs where Delta and Northwest competed with each other prior to the merger did not increase by much following the merger. This result is consistent with the additional finding that the impact of changes in low-cost carrier competition is large while the effect of changes in competition from legacy carriers is slight. Since both Delta and Northwest Airlines are legacy carriers, the results for other legacies suggest that the merger should not have exerted a dramatic impact on fares. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

The Price Effects of the Delta/Northwest Airline Merger

Review of Industrial Organization , Volume 44 (1) – Feb 28, 2013

Loading next page...
1
 
/lp/springer_journal/the-price-effects-of-the-delta-northwest-airline-merger-ADLzF3nG6j

References (21)

Publisher
Springer Journals
Copyright
Copyright © 2013 by Springer Science+Business Media New York
Subject
Economics / Management Science; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
DOI
10.1007/s11151-013-9380-1
Publisher site
See Article on Publisher Site

Abstract

This paper examines the price effects of the merger between Delta Airlines and Northwest Airlines. Empirical analysis finds that, other things equal, the fares for airport-pairs where Delta and Northwest competed with each other prior to the merger did not increase by much following the merger. This result is consistent with the additional finding that the impact of changes in low-cost carrier competition is large while the effect of changes in competition from legacy carriers is slight. Since both Delta and Northwest Airlines are legacy carriers, the results for other legacies suggest that the merger should not have exerted a dramatic impact on fares.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Feb 28, 2013

There are no references for this article.