Barriers to Entry in the Airline Industry: A Multidimensional Regression-Discontinuity Analysis of AIR-21

@article{Snider2015BarriersTE,
  title={Barriers to Entry in the Airline Industry: A Multidimensional Regression-Discontinuity Analysis of AIR-21},
  author={Connan Andrew Snider and Jonathan W. Williams},
  journal={Review of Economics and Statistics},
  year={2015},
  volume={97},
  pages={1002-1022}
}
Abstract We investigate the success of legislation aimed at increasing competition at highly concentrated U.S. airports, mainly by forcing these airports to increase the availability of scarce facilities. We use a multidimensional regression-discontinuity approach to exploit a sharp discontinuity in the law’s implementation and identify its effects. We find that fares decrease by 13.4% (20.2%) in markets with one (both) end point(s) covered. Approximately half of the decline is driven by the… 

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