Abstract
Codesharing has become an essential tool for airline alliances. This paper investigates the effects of codesharing on airline conduct and air fares, focusing on interaction between airlines, and measures the impacts of a codesharing agreement between non-market leaders on the market leader's price and volume. An analytical model is developed and applied to panel data from 57 transpacific routes for the 1982-92 period, and the results of the analysis in terms of price and volume are given. (Author/publisher).