Evaluating the price effects of two airline mergers in China

Ma, Wenliang and Wang, Qiang and Yang, Hangjun and Zhang, Yahua ORCID: https://orcid.org/0000-0003-1522-3402 (2020) Evaluating the price effects of two airline mergers in China. Transportation Research Part E: Logistics and Transportation Review, 141:102030. pp. 1-21. ISSN 1366-5545

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Abstract

This paper compares the price effects of two influential airline mergers taking place in China in 2010. We offer the first comparative analysis of two different types of airline mergers in the Chinese airline market: a parallel merger and a complementary merger. With a difference-in-differences approach, we found that the two types of mergers resulted in similar pricing patterns for the airlines involved in the mergers, suggesting that complementary mergers could also confer an increase in market power. It has been found that the negative impact of high-speed rail on fares gradually weakened after the mergers.


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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: 28 Jul 2020 01:08
Last Modified: 31 Jul 2020 01:59
Uncontrolled Keywords: Airline merger; Price effect; Comparative analysis; High-speed rail; Overlapping network; Complementary network
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 > 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 > 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.tre.2020.102030
URI: http://eprints.usq.edu.au/id/eprint/39077

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