A REESTIMATION OF THE AIR TRANSPORT ASSOCIATION STUDY OF AIRLINE FARES AND STUDY OF AIRLINE FARES AND CONCENTRATION

This paper reestimates a previous econometric study of airline fares a nd concentration. carried out for the Air Transport Association. That study found that air fates were not associated with concentration, in contrast to several previous studies. This reestimation follows Leamer 's proposed method in examining a range of alternative specifications. in this case due to the collinearity among variables in this data set . According to these estimates, concentration probably does cause high er air fares.