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Review of Industrial Organization

, Volume 54, Issue 1, pp 3–36 | Cite as

Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015

  • Federico CilibertoEmail author
  • Emily E. Cook
  • Jonathan W. Williams
Article

Abstract

We study the effect of consolidation on airline network connectivity using three measures of centrality from graph theory: Degree; Closeness; and Betweenness. Changes in these measures from 1990 to 2015 imply: (i) the average airport services a greater proportion of possible routes; (ii) the average origin airport is fewer stops away from any given destination; and (iii) the average hub is less often along the shortest route between two other airports. Yet, we find the trend toward greater connectivity in the national network structure is largely unaffected by consolidation—in the form of mergers and codeshare agreements—during this period.

Keywords

Network Airlines Consolidation Mergers Codeshare agreements Airports 

Notes

Acknowledgements

Federico Ciliberto acknowledges the Quantitative Collaborative at the University of Virginia for financial support.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  • Federico Ciliberto
    • 1
    • 3
    • 4
    Email author
  • Emily E. Cook
    • 1
  • Jonathan W. Williams
    • 2
  1. 1.Department of EconomicsUniversity of VirginiaCharlottesvilleUSA
  2. 2.Department of EconomicsUniversity of North CarolinaChapel HillUSA
  3. 3.The Center for Economic and Policy ResearchLondonUnited Kingdom
  4. 4.DIWBerlinGermany

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