Competition and Quality: Evidence from High-Speed Railways and Airlines

Hanming Fang · Long Wang · Yang Yang

28 citations0/0 files storedThe Review of Economics and Statistics

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Aviation Industry Analysis and Trends Air Traffic Management and Optimization Transport and Economic Policies

Abstract

Abstract The entry of High-Speed Railways (HSR) represents disruptive competition to airlines. Utilizing a unique dataset of all flights departing from Beijing to 113 domestic destinations in China since January 2009, we employ a difference-in-differences approach to examine the effects of HSR entry on on-time performance and to identify the channels. We document two main findings. First, the entry of HSR leads to significant reductions in the mean and variance of travel delays on the affected airline routes. Second, the reductions in departure delays and taxi-in times at the destination airports are identified as the main channels.

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References

1996Competition and Corporate Performance 2018Railroads of the Raj: Estimating the Impact of Transportation Infrastructure 2007Did Highways Cause Suburbanization?2014Does banking competition affect innovation?2012Urban Growth and Transportation 2011The Fundamental Law of Road Congestion: Evidence from US Cities 2017Roads, Railroads, and Decentralization of Chinese Cities 2012Import Competition and Quality Upgrading

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