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STICERD Industrial Organisation Seminars

Price Competition and Endogenous Product Choice in Networks: Evidence from the US Airline Industry

Cristina Gualdani (Queen Mary University of London), joint with Christian Bontemps (Toulouse School of Economics) and Kevin Remmy (University of Mannheim)

Monday 14 November 2022 12:30 - 14:00

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

Unless otherwise specified, in-person seminars are open to the public.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.

About this event

We build and estimate a two-stage model of airline competition in which firms first form the networks of markets to be served and then compete in prices. We estimate our model using fares data on US domestic flights. We show that large hub-and-spoke operations lower marginal costs but increase fixed costs. We evaluate a merger between American Airlines and US Airways. We also evaluate remedies imposed by the Department of Justice on the merging parties.

Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, in person in SAL 3.05, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Sadia Ali:

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