Skip to Main Content
 

Global Search Box

 
 
 
 

Files

File List


Thesis.pdf (315.2 KB)

ETD Abstract Container

Abstract Header

Flying Under the Radar: Multimarket Contact and Tacit Collusion in the U.S. Airline Industry

Shaneyfelt, Henry Jameson
http://orcid.org/0000-0002-5289-4072
http://rave.ohiolink.edu/etdc/view?acc_num=miami1618840833797284

Abstract Details

2021, Master of Arts, Miami University, Economics.
This paper serves to identify the effects of multimarket contact on tacit collusion through the measures of average price and price dispersion. The assertion of the theoretical literature is that higher levels of multimarket contact are corollary to firms relaxing competitive pricing. It is consequently an expectation that higher prices and more price discrimination will be seen within markets comprising of firms simultaneously competing with rival firms in many markets. Implementing methods used in Evans and Kessides (1994) and Ciliberto and Williams (2014), I employ gate-use data to instrument for the average multimarket contact variable and address any potential bias from endogeneity. Additionally, squared gate-use instruments, which are novel to the existing literature, are included in the analysis. When implementing this new methodology, I find a significant positive relationship between multimarket contact and average price with estimates matching the existing literature. Using the same methodology, a significant positive relationship is found between multimarket contact and price dispersion which has hitherto not been observed. The results of this paper indicate that collusive behavior is indeed present within markets with higher levels of multimarket contact.
Charles Moul, PhD (Advisor)
Peter Nencka, PhD (Committee Member)
Mark Tremblay, PhD (Committee Member)
38 p.
Economics

Recommended Citations

Citations

  • Shaneyfelt, H. J. (2021). Flying Under the Radar: Multimarket Contact and Tacit Collusion in the U.S. Airline Industry [Master's thesis, Miami University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=miami1618840833797284

    APA Style (7th edition)

  • Shaneyfelt, Henry. Flying Under the Radar: Multimarket Contact and Tacit Collusion in the U.S. Airline Industry. 2021. Miami University, Master's thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=miami1618840833797284.

    MLA Style (8th edition)

  • Shaneyfelt, Henry. "Flying Under the Radar: Multimarket Contact and Tacit Collusion in the U.S. Airline Industry." Master's thesis, Miami University, 2021. http://rave.ohiolink.edu/etdc/view?acc_num=miami1618840833797284

    Chicago Manual of Style (17th edition)

miami1618840833797284
338
© 2021, all rights reserved.
This open access ETD is published by Miami University and OhioLINK.