Strategic uncertainty and market size: An illustration on the Wright amendment - HAL Accéder directement au contenu
Pré-publication, Document de travail Année : 2021

Strategic uncertainty and market size: An illustration on the Wright amendment

Résumé

This paper exploits the repeal of the Wright amendment as a natural experiment in order to contribute to the ongoing discussion on how the enlargement of the relevant market affects the ability of firms to coordinate on a Nash equilibrium. Using data on the U.S. air transportation industry, we present a Difference-inDifference procedure which sheds light on the significant loss of accuracy in airlines' predictions in markets originating in Dallas after the Love Field airport started operating long distance services in 2014. This suggests that competition authorities should be careful when they refer to the Nash equilibrium following market expansion reforms.
Fichier principal
Vignette du fichier
wp_202153_.pdf ( 315.9 Ko ) Télécharger
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

halshs-03359597, version 1 (30-09-2021)

Identifiants

  • HAL Id : halshs-03359597 , version 1

Citer

Philippe Gagnepain, Stéphane Gauthier. Strategic uncertainty and market size: An illustration on the Wright amendment. 2021. ⟨halshs-03359597⟩
104 Consultations
44 Téléchargements
Dernière date de mise à jour le 07/04/2024
comment ces indicateurs sont-ils produits

Partager

Gmail Facebook Twitter LinkedIn Plus