City-Pairs Versus Airport-Pairs: A Market-Definition Methodology for the Airline Industry

B-Tier
Journal: Review of Industrial Organization
Year: 2014
Volume: 44
Issue: 1
Pages: 1-25

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper provides a methodology for deciding which airports warrant grouping in multi-airport metropolitan areas. The methodology is based on the comparability of incremental competition effects from nearby airports on average fares at a metropolitan area’s primary airport. Results from a quarterly panel data set for the period 2003–2009 provide strong evidence that city-pairs, rather than airport-pairs, are the appropriate market definition for analyses of passenger air transportation involving many (but not all) large metropolitan areas. Based on the proposed method, we offer a recommended list of airports that should be grouped when creating city-pairs for the analysis of competition in the US domestic airline industry. Copyright Springer Science+Business Media New York 2014

Technical Details

RePEc Handle
repec:kap:revind:v:44:y:2014:i:1:p:1-25
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-24