increase with the intensity of competition. We develop a new measure of competition for which we use the proximity (in … departure time) of a given flight to its competitors to infer the intensity of competition and estimate the impact of … competition on advance purchase discounts (APDs) and the dynamic pricing of airlines by exploiting plausibly exogenous changes in …

Firms signal high quality through high prices even if the market structure is highly competitive and price competition … is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is …

in separate stages, as then firms want to limit the toll competition by setting lower capacities; or when firms set … higher capacities. In our Stackelberg competition, the firms that act last have few if any capacity decisions to influence …. Hence, they are more concerned with the toll-competition substage, and set a higher volume/capacity ratio than sociall y …