Bridging Retrospective and Prospective Merger Analyses: The Case of US Airline Mergers

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Tác giả: Gaurab Aryal, Anirban Chattopadhyaya, Federico Ciliberto

Ngôn ngữ: eng

Ký hiệu phân loại: 658.16 Reorganization and dissolution of enterprises

Thông tin xuất bản: 2025

Mô tả vật lý:

Bộ sưu tập: Metadata

ID: 226588

We begin with a retrospective analysis of three major U.S. airline mergers and document the sensitivity of the findings, particularly questioning whether market conditions evolve similarly for treated and control markets. We then develop a structural model that clarifies this and other assumptions implicit in retrospective analyses and separates efficiency gains from increases in firms' conduct. Using only pre-merger data, we propose a reduced-form approach that leverages exogenous changes in market structure to forecast merger effects. Finally, we use structural prospective merger simulations with our other estimates for a comprehensive evaluation. This bridging of approaches uncovers a fundamental tension: either efficiency gains were limited or, if they were significant, they were accompanied and offset by coordinated effects.
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