Dynamic efficiencies of the 1997 Boeing-McDonnell Douglas merger

• 成果类型: Article
• 署名作者: An, Yonghong; Zhao, Wei
• 署名单位: Texas A&M University System; Texas A&M University College Station; Nankai University
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12291
• 发表日期: 2019
• 页码: 666-694
• 关键词: spillovers

摘要

We evaluate the welfare effects of the 1997 Boeing-McDonnell Douglas merger in the medium-sized, wide-body aircraft industry. We find that the merger led to lower prices. To explain the price drop, we develop a dynamic oligopoly game with learning-by-doing. We quantify the welfare effects of the merger by incorporating both increased market power and merger efficiencies from accelerated learning-by-doing. Our dynamic analysis indicates that net consumer surplus increased by as much as $5.14 billion, whereas a static model ignoring efficiencies of learning-by-doing predicts a $0.92 billion loss.