Did the airline tariff publishing case reduce collusion? by Amalia R. Miller

By:

Miller, Amalia R [author]

Material type: Text

TextSeries: Journal of law and economics ; Volume 53, number 3Chicago: University of Chicago Press; 2010Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

00222186

Subject(s):

LOC classification:

HB73 JOU

Online resources:

Click here to access online

Summary: In December 1992, the U.S. Department of Justice filed suit against eight major domestic airlines and the Airline Tariff Publishing (ATP) Company in order to reduce opportunities for collusion in the industry. The lawsuit ended with consent decrees limiting the ability of airlines to communicate surreptitiously through the shared fare database. This paper measures the effects of the litigation and its settlement on industry performance, comparing changes in outcomes between market segments that were more and less likely to be affected by the ATP case. Prices fell in response to the investigation but increased following the settlement, while the number of tickets sold in affected markets declined. The importance of multimarket contact also declined and then recovered. The ATP case had at best a temporary effect on airline collusion

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Holdings
Item type	Current library	Call number	Vol info	Copy number	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HB73 JOU (Browse shelf(Opens below))	Vol. 53, no.3 (pages 569-586)	SP8313	Not for loan	For In House Use Only

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In December 1992, the U.S. Department of Justice filed suit against eight major domestic airlines and the Airline Tariff Publishing (ATP) Company in order to reduce opportunities for collusion in the industry. The lawsuit ended with consent decrees limiting the ability of airlines to communicate surreptitiously through the shared fare database. This paper measures the effects of the litigation and its settlement on industry performance, comparing changes in outcomes between market segments that were more and less likely to be affected by the ATP case. Prices fell in response to the investigation but increased following the settlement, while the number of tickets sold in affected markets declined. The importance of multimarket contact also declined and then recovered. The ATP case had at best a temporary effect on airline collusion

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