Replication data for: On the Efficiency of Codeshare Contracts between Airlines: Is Double Marginalization Eliminated?
Principal Investigator(s): View help for Principal Investigator(s) Philip G. Gayle
Version: View help for Version V1
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Project Citation:
Gayle, Philip G. Replication data for: On the Efficiency of Codeshare Contracts between Airlines: Is Double Marginalization Eliminated? Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114413V1
Project Description
Summary:
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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.
Scope of Project
JEL Classification:
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D86 Economics of Contract: Theory
L13 Oligopoly and Other Imperfect Markets
L14 Transactional Relationships; Contracts and Reputation; Networks
L93 Air Transportation
D86 Economics of Contract: Theory
L13 Oligopoly and Other Imperfect Markets
L14 Transactional Relationships; Contracts and Reputation; Networks
L93 Air Transportation
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