New paper estimating the effects of ownership concentration, measured at 400 airports in the US, of two proposed, but never consummated rental car mergers.
Table 8. Distribution of Markets According to the Predicted Average Price
Increases for Two Proposed Acquisitions of Dollar Thrifty
Predicted Market Average Price Increase | Acquisition by Avis-Budget | Acquisition by Hertz-Advantage |
.01–.99% | 0 | 2 |
1.00–1.99% | 11 | 77 |
2.00–4.99% | 104 | 38 |
5.00–9.99% | 3 | 0 |
10.00–19.99% | 2 | 0 |
>19.99% | 0 | 0 |
...The predicted price increases are larger for the acquisition by Avis-Budget almost entirely because the Advantage brand was not present at many of the 117 airports, so at many airports the acquisition by Hertz-Advantage would have increased market concentration much less than the acquisition by Avis-Budget.
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