@article {An:2019:0741-6261:666,
title = "Dynamic efficiencies of the 1997 BoeingMcDonnell Douglas merger",
journal = "The RAND Journal of Economics",
parent_itemid = "infobike://bpl/rand",
publishercode ="bp",
year = "2019",
volume = "50",
number = "3",
publication date ="2019-09-01T00:00:00",
pages = "666-694",
itemtype = "ARTICLE",
issn = "0741-6261",
eissn = "1756-2171",
url = "https://www.ingentaconnect.com/content/bpl/rand/2019/00000050/00000003/art00007",
doi = "doi:10.1111/1756-2171.12291",
author = "An, Yonghong and Zhao, Wei",
abstract = "We evaluate the welfare effects of the 1997 BoeingMcDonnell Douglas merger in the mediumsized, widebody aircraft industry. We find that the merger led to lower prices. To explain the price drop, we develop a dynamic oligopoly game with learningbydoing.
We quantify the welfare effects of the merger by incorporating both increased market power and merger efficiencies from accelerated learningbydoing. Our dynamic analysis indicates that net consumer surplus increased by as much as $5.14 billion, whereas a static model
ignoring efficiencies of learningbydoing predicts a $0.92 billionloss.",
}