Barriers to Entry in the Airline Industry: A Multidimensional Regression-Discontinuity Analysis of AIR-21

• 成果类型: Article
• 署名作者: Snider, Connan; Williams, Jonathan W.
• 署名单位: University of California System; University of California Los Angeles; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00455
• 发表日期: 2015-12
• 页码: 1002-1022
• 关键词: MARKET-STRUCTURE; traffic delays; PROGRAMS; density; DESIGN; POWER; MODEL

摘要

We investigate the success of legislation aimed at increasing competition at highly concentrated U.S. airports, mainly by forcing these airports to increase the availability of scarce facilities. We use a multidimensional regression-discontinuity approach to exploit a sharp discontinuity in the law's implementation and identify its effects. We find that fares decrease by 13.4% (20.2%) in markets with one (both) end point(s) covered. Approximately half of the decline is driven by the entry of low-cost carriers. We find little evidence that the fare declines were accompanied by a diminished quality of service, and passenger volumes increased, which suggests the legislation improved consumer welfare.