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We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is complicated by the very selection problem which they...
Persistent link: https://www.econbiz.de/10012464773
In this paper, we investigate empirically the effect of two recent domestic airline alliances. We find that both …
Persistent link: https://www.econbiz.de/10012470529
. The turmoil in the U.S. airline industry has triggered much of the public policy discussion, as some observers have argued … and their rivals. The data suggest that an airline's prices typically decline somewhat before it files for bankruptcy … bankrupt airline lower their prices, however, nor that they lose passengers to their bankrupt rival. These results indicate …
Persistent link: https://www.econbiz.de/10012473846
This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such … variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on … a route averages thirty-six percent of the airline's average ticket price on the route. The pattern of price dispersion …
Persistent link: https://www.econbiz.de/10012475215
Increasing evidence indicates the importance of management in determining firms' productivity. Yet, causal evidence regarding the effectiveness of management practices is scarce, especially for high-skilled workers in the developed world. In an eight-month field experiment measuring the...
Persistent link: https://www.econbiz.de/10012479572
of HSR leads to significant reductions in the mean and variance of travel delays on the affected airline routes. Second …
Persistent link: https://www.econbiz.de/10012481330
take advantage of a quasi-experiment - the introduction of new routes by a low-cost airline - to test the predictions of … the theory. Results show that travel costs constitute an important friction to collaboration: after a low-cost airline …
Persistent link: https://www.econbiz.de/10012452941
We estimate a model of service choice and price competition in airline markets, allowing for the carriers that provide …
Persistent link: https://www.econbiz.de/10012453499
We study how organizational boundaries affect pricing decisions using comprehensive data from a large U.S. airline. We …
Persistent link: https://www.econbiz.de/10012696417
technologically older, vintage capital in the airline industry. Using a panel of aircraft-level data around the world, we find that …
Persistent link: https://www.econbiz.de/10012462916