Showing 1 - 10 of 453
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/10013229357
The one-shot nature of most theoretical models of strategic investment, especially those based on asymmetric information, limits our ability to test whether they can fit the data. We develop a dynamic version of the classic Milgrom and Roberts (1982) model of limit pricing, where a monopolist...
Persistent link: https://www.econbiz.de/10013050311
We examine how incumbents respond to the threat of entry by competitors (as distinct from how they respond to actual entry). We look specifically at passenger airlines, using the evolution of Southwest Airlines' route network to identify particular routes where the probability of future entry...
Persistent link: https://www.econbiz.de/10014067375
last decade. More than 30 years after domestic airline markets were deregulated, the dismal financial record is a puzzle …, analysts, and researchers -- including high taxes and fuel costs, weak demand, and competition from lower-cost airlines …
Persistent link: https://www.econbiz.de/10013130786
public policy issues facing the industry: (a) the sustainability of competition and volatility of airline profits, (b …Following a brief review of the U.S. domestic airline industry under regulation (1938-1978), we study the changes that … have occurred in pricing, service, and competition in the 28 years since deregulation. We then examine some of the major …
Persistent link: https://www.econbiz.de/10012775910
Airline transport generates a growing share of global greenhouse gas emissions but as of late 2016, this sector has not … have invested in human and physical capital and an inventory of parts to maintain these vehicles. Each airline chooses …
Persistent link: https://www.econbiz.de/10012979351
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/10012929582
. 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/10013232906
The airline industry's current financial crisis has raised concerns over the ramifications of airline bankruptcies for … air service offered, not the number of flights offered by a particular airline. We study all major U.S. airline … recognizing that competing airlines may increase service in response to a reduction in flights by a bankrupt airline. We do not …
Persistent link: https://www.econbiz.de/10013230365
A number of recent papers have studied the relationship between price and market structure in the deregulated airline … the industry. The particular entry events that we focus on are those involving People Express Airline in 1984 and 1985. To …
Persistent link: https://www.econbiz.de/10013218106