Airline Code-share Alliances and Costs: Imposing Concavity on Translog Cost Function Estimation
Airline Code-share Alliances and Costs: Imposing Concavity on Translog Cost Function Estimation
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DOI：
10.2139/ssrn.431960
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发表时间：
2003-08
影响因子：
1.1
通讯作者：
Chew Lian Chua;H. Kew;Jongsay Yong
中科院分区：
文献类型：
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作者：
Chew Lian Chua;H. Kew;Jongsay Yong
本文评估了航空公司代码共享联盟如何影响航空业的成本。它对文献做出了两个贡献。首先，它使用美国 10 家主要航空公司在 29 个季度的面板数据集来估计跨日志成本函数，从而衡量航空公司联盟的影响。其次，它通过使用 Ryan 和 Wales (2000, Economics Letters 67, 253–260) 建议的程序来确保估计成本函数的凹性。首先估计传统的跨对数成本函数并计算尺度估计。不幸的是，估计函数不符合曲率要求，这使得解释联盟的估计效果有些可疑。因此，我们通过施加局部凹性限制来重新估计成本函数。我们发现，大型联盟伙伴对航空公司成本的负面影响较小，而小型联盟伙伴对成本的影响似乎是积极的，尽管其幅度可以忽略不计。我们还发现，在施加局部凹度后，规模经济的估计存在重大差异。
This paper provides an assessment of how airline code-share alliances affect the costs of the airline industry. It makes two contributions to the literature. First, it measures the effects of airline alliances by estimating a translog cost function using a panel dataset of 10 major U.S.-based airlines over 29 quarters. Secondly, it ensures concavity of the estimated cost function by using the procedure suggested by Ryan and Wales (2000, Economics Letters 67, 253–260). A conventional translog cost function is first estimated and scale estimates are computed. Unfortunately, the estimated function fails the curvature requirement, which makes interpreting the estimated effects of alliances somewhat dubious. Hence, we re-estimate the cost function by imposing local concavity restrictions. We find that large alliance partners have a small negative effect on airlines’ costs, but small alliance partners’ effect on costs appear to be positive, although the magnitude is negligible. We also find material differences in the estimates of scale economies after imposing local concavity.