On the Efficiency of Codeshare Contracts between Airlines: Is Double Marginalization Eliminated?

• 成果类型: Article
• 署名作者: Gayle, Philip G.
• 署名单位: Kansas State University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.5.4.244
• 发表日期: 2013
• 页码: 244-273
• 关键词: Vertical Integration; international airfares; empirical-analysis; wholesale price; market power; alliances; models; manufacturers; performance; ECONOMICS

摘要

Previous research has suggested that codeshare agreements eliminate double marginalization that exists when unaffiliated airlines independently determine the price for different segments of an interline trip. Using a structural econometric model, this paper investigates whether codeshare contracts do eliminate double marginalization. The results suggest that both upstream and downstream margins persist when the operating carrier of a codeshare product also offers competing single-carrier product(s) in the concerned market. Furthermore, counterfactual simulations from the model suggest that efficient pricing of these codeshare products would lower their price, and yield nontrivial increases in consumer welfare.