In this article, CRA’s Yajing Jiang and her coauthor review the recent economic literature on airline partnerships, explain the intuitions behind canonical economic theoretical models, and summarize the empirical findings of the price and non-price effects of the various forms of partnerships. Given the mixed empirical findings, the article underscores the importance of antitrust practitioners considering facts backed by documents and data when citing numerical estimates from the literature.
How capacity constraints shape unilateral price effects in horizontal mergers
Examples include hospitals with a fixed number of beds, and hotels with a fixed number of rooms. In the article “Unilateral Price Effects in Horizontal...