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Collude, compete, or both? : deregulation in the Norwegian airline industry

Salvanes, Kjell Gunnar; Steen, Frode; Sørgard, Lars
Working paper
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URI
http://hdl.handle.net/11250/163012
Date
1998-10
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  • Discussion papers (SAM) [607]
Abstract
The purpose of this paper is to test the nature of competition concerning price and capacity

setting in the Norwegian airline industry after the deregulation in 1994. Did the two airlines,

SAS and Braathens, compete on prices and capacities (competition), collude on prices and

capacities (collusion) or collude on prices and compete on capacities (semicollusion)? We

reject the hypothesis that they achieved collusion, and we find the observed behaviourconsistent with semicollusive behaviour and inconsistent with competitive behaviour.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
1998:18

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