Market Structure and Competition in Airline Markets
构建了一个计量框架，同时估计航空公司的进入和定价决策，并考虑成本与需求冲击的相关性。研究发现忽略内生进入会扭曲需求弹性估计，并模拟了美国航空与全美航空合并后的产品重新定位与市场结果。
We provide an econometric framework for estimating a game of simultaneous entry and pricing decisions while allowing for correlations between unobserved cost and demand shocks. We use our framework to account for selection in the pricing stage. We estimate the model using data from the US airline industry and find that not accounting for endogenous entry leads to biased estimation of demand elasticities. We simulate a merger between American and US Airways and find that product repositioning and postmerger outcomes depend on how we model the characteristics of the merged firm as a function of the premerger firms’ characteristics.