Korean Air-Asiana Airlines Merger
The Korean Air-Asiana Airlines Merger Shows How Rational Actors May Produce Irrational Outcomes
Sangyun Lee reviews the 2021 merger between Korean Air and Asiana Airlines, which was promoted by the government despite warnings from the majority of experts deeming it obviously anticompetitive and harmful to consumers. He finds that the merger is a paragon of how, under institutional constraints, the rational choices of actors and organizations can collectively lead to irrational, suboptimal outcomes.
