Network Competition in the Airline Industry: An Empirical Framework

• 成果类型: Article
• 署名作者: Yuan, Zhe; Barwick, Panle Jia
• 署名单位: Zhejiang University; University of Wisconsin System; National Bureau of Economic Research; University of Wisconsin Madison; Center for Economic & Policy Research (CEPR)
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.70031
• 发表日期: 2026
• 关键词: economies; entry; MODEL; performance; equilibria; density; mergers; choices; prices

摘要

This article proposes an empirical framework and a novel equilibrium concept to analyze network competition in the airline industry. A two-stage entry model links direct and indirect flights, using a technological relationship estimated from data to mimic the hub-and-spoke network. It employs revealed-preference arguments to bound fixed cost parameters, estimated using state-of-the-art econometric methods. Ignoring network externality undervalues the benefits of additional flights by 13.2% and leads to 21.5% fewer one-stop flights. A hypothetical merger between Alaska and Virgin in 2014 could increase consumer surplus as the merged airline would offer more flights with muted post-merger prices.