Subcontracting Network Formation Among U.S. Airline Carriers*
使用贝叶斯估计和DB1B数据，研究美国航空业分包网络形成与定价，发现主要航空公司更可能在竞争对手已分包时进入分包路线，而区域航空公司则避免竞争；主要航空公司的分包使价格降低3.4%。
In this paper, we use Bayesian estimation to study subcontracting network formation and pricing decisions in the U.S. airline industry with DB1B data. We find that a major carrier is more likely to enter a route in subcontracting services if its rivals have already subcontracted while regional carriers prefer to avoid competition. For existing major carriers per‐route, self‐service and use of subsidiaries are complementary to subcontracting, while code‐sharing is a substitute. Carrier similarity and previously formed networks have significant impacts on new network formations. Taking potential endogeneity issues into account, we find that major carriers’ subcontracting decreases prices by 3.4%.