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STICERD Industrial Organisation Seminars

Airline Services Agreements: A Structural Model of Network Formation

Marc Rysman (Boston University), joint with Phillip McCalman (University of Melbourne)

Monday 14 November 2016 12:30 - 14:00

This event will take place online.

Many of our seminars and public events this year will continue as online seminars or as online and in person. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, current restrictions mean in-person seminars are only open to members of the LSE community (those with a valid LSE ID card).

Those unable to join the seminars in-person are welcome to participate via zoom.

About this event

Airline services agreements are necessary for direct flights between countries and consequently they are central to the operation of the commercial airline market. These agreements are bilateral in nature but their coverage is far from universal. To gain insight into why some agreements are signed but other links go unrealized, we study a new data set on airlines services agreements from the perspective of strategic network formation. We develop a structural model based on moment inequalities that uses the concepts of pairwise stability to generate estimating equations and also introduce methods to implement refinements of pairwise stability. The network structure is found to be important in determining the choices of countries to form agreements, and that the jointly optimal network of agreements would be substantially different than the observed outcome.

Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, ONLINE, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Lubala Chibwe, either by email:

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This event will take place online.