Concentration and price trends in the US domestic airline industry: 1990–2000

Abstract

This paper analyzes concentration and price changes in the US domestic airline industry throughout the 1990s. In general, we find that national measures of concentration remained relatively flat throughout the 1990s while overall airline prices fell significantly in real terms. These findings tend to suggest that concerns of increasing concentration and rising prices such as those by Brock (Review of Industrial Organization 16 (2000) 41–51) are largely unfounded.