Adaptation and Vertical Integration in the Airline Industry
研究美国航空业中，主要航空公司是否更可能在天气恶劣或与其网络整合度高的航线上使用自有支线公司，以降低事后重新谈判成本。
We explore patterns of vertical integration in the US airline industry. Major airlines subcontract portions of their network to regional partners, which may or may not be owned. We investigate if ownership economizes on ex post renegotiation costs. We estimate whether airlines are more likely to use owned regionals on city pairs with adverse weather (which makes adaptation decisions more frequent) and on city pairs that are more integrated into the major's network (which raises the costs of having adaptation decisions resolved suboptimally). Our results suggest a robust empirical relationship between adaptation and vertical integration in this setting.