This paper involved the estimation of a series of fare
equations in order to ascertain the effects of actual and
potential competition by Southwest on markets for air
travel. The results indicate that pricing strategies differ
depending on Southwest's presence on a route, which is not
consistent with the theory...
The US airline industry is going through a period of consolidation through mergers between leading airlines. A number of recent mergers have been approved by the Antitrust Division of the Department of Justice (DOJ) based on the presence of Southwest Airlines in merger-affected markets. In doing so, the DOJ makes...