scholarly journals Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conduct Parameters in the Airline Industry

Author(s):  
Federico Ciliberto ◽  
Jonathan W. Williams



2020 ◽  
Author(s):  
Gaurab Aryal ◽  
Dennis J. Campbell ◽  
Federico Ciliberto ◽  
Ekaterina A. Khmelnitskaya




2014 ◽  
Author(s):  
Niklas Horstmann ◽  
Jan Kraemer








1994 ◽  
Vol 109 (2) ◽  
pp. 341-366 ◽  
Author(s):  
W. N. Evans ◽  
I. N. Kessides


Author(s):  
Brett Saraniti

Two Hawaiian airlines' cooperative environment is disrupted by the entry of a third competitor, Mesa Airways. The price war leads to fares as low as $0 and causes more than $100 million in losses in the first year with no end in sight. Industry risk factors for price competition were reduced in 2001 when the government granted a one-year reprieve from anti-trust laws, but increased dramatically after Mesa's announced entry.To demonstrate how industry risk factors drive price competition. The initial circumstances are supportive of a tacit collusion between two firms; following the entry of the third airline, conditions were more conducive to a devastating price war.





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