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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