Impact of high-speed rail on market concentration and Lerner index in China’s airline market

Zhang, Qiong and Yang, Hangjun and Wang, Qiang and Zhang, Anming and Zhang, Yahua ORCID: https://orcid.org/0000-0003-1522-3402 (2020) Impact of high-speed rail on market concentration and Lerner index in China’s airline market. Journal of Air Transport Management, 83:101755. pp. 1-8. ISSN 0969-6997

Abstract

China has become the second largest air transport market in the world since 2005. Its total length of high-speed rail (HSR) tracks in operation has been greater than that of all other countries combined since 2012. HSR poses a significant challenge to the Chinese airline industry, especially on major airline routes. The impacts of HSR on two market-competition measures, namely, the Herfindahl–Hirschman Index (HHI) and the Lerner index, are examined in this study. In general, the entry of HSR had the effect of reducing market power measured by both the unweighted and weighted Lerner indexes. However, the Lerner index and HHI of the routes with parallel HSR services remained consistently higher than those of the routes without parallel HSR services.

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Item Type:	Article (Commonwealth Reporting Category C)
Refereed:	Yes
Item Status:	Live Archive
Faculty/School / Institute/Centre:	Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre:	Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited:	29 Jan 2020 06:59
Last Modified:	02 Jun 2021 00:03
Uncontrolled Keywords:	Airline competition; High-speed rail; Lerner index; HHI
Fields of Research (2008):	15 Commerce, Management, Tourism and Services > 1507 Transportation and Freight Services > 150701 Air Transportation and Freight Services 14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation 14 Economics > 1402 Applied Economics > 140217 Transport Economics
Fields of Research (2020):	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3509 Transportation, logistics and supply chains > 350901 Air transportation and freight services 38 ECONOMICS > 3801 Applied economics > 380109 Industry economics and industrial organisation 38 ECONOMICS > 3801 Applied economics > 380117 Transport economics
Socio-Economic Objectives (2008):	B Economic Development > 88 Transport > 8803 Aerospace Transport > 880302 Air Passenger Transport
Identification Number or DOI:	https://doi.org/10.1016/j.jairtraman.2019.101755
URI:	http://eprints.usq.edu.au/id/eprint/37529

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