Competitive effects of mergers with regulatory divestiture of assets: Evidence from airline industry

Grant description:

This proposal investigates the effects of mergers in the airline industry upon price, flight frequency, and consumer welfare. Specifically, it will investigate the competitive effects of the merger between US Airways and American Airlines in 2013 and ask whether (or to what extent) the structural remedies required by the U.S. Department of Justice mitigated the expected loss in consumer welfare. In doing so, the investigator seeks to provide a framework for antitrust authorities to approach welfare implications of future airline-related mergers and joint ventures when airport slots are involved.