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 (2020) Impact of high-speed rail on market concentration and Lerner index in China’s airline market. Journal of Air Transport Management, 83 (Article 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
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Date Deposited: 29 Jan 2020 06:59
Last Modified: 07 May 2020 22:54
Uncontrolled Keywords: Airline competition; High-speed rail; Lerner index; HHI
Fields of Research : 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
Socio-Economic Objective: B Economic Development > 88 Transport > 8803 Aerospace Transport > 880302 Air Passenger Transport
Identification Number or DOI: 10.1016/j.jairtraman.2019.101755
URI: http://eprints.usq.edu.au/id/eprint/37529

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