Showing 1 - 10 of 29
last decade. More than 30 years after domestic airline markets were deregulated, the dismal financial record is a puzzle …
Persistent link: https://www.econbiz.de/10013130786
Following a brief review of the U.S. domestic airline industry under regulation (1938-1978), we study the changes that … public policy issues facing the industry: (a) the sustainability of competition and volatility of airline profits, (b …
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
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 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
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
airline industry. We consider an airline's choices of quality and price as dynamic decisions that trade off current cash flows … for future revenue. We examine how airline mishandled baggage, on-time performance and pricing are related to financial … distress and bankruptcy, controlling for the endogeneity of financial distress and bankruptcy. We find that an airline …
Persistent link: https://www.econbiz.de/10013122187
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/10012772363