Dave Brown
نویسندگان
چکیده
In October 2008, the Department of Justice approved the Delta/Northwest merger, claiming the potential for substantial cost efficiencies with little or no harmful effects on competition. What makes this merger particularly interesting is that Delta and Northwest are codeshare partners. As such, the merger could have varying effects across different product types (pure online versus codeshare). Using pre-merger data and a structural econometric model, we analyze the potential effects of this merger. We find that predicted percent price increases for Delta and Northwest codeshare products are larger than the predicted percent increases for their pure online products.
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