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We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish … comprehensive pricing and bookings data for competing U.S. airlines, we estimate our model and find that dynamic pricing results in … results in single-firm settings due to the strategic role of competitor scarcity. Pricing heuristics commonly used by airlines …
Persistent link: https://www.econbiz.de/10013362001
We establish the Hurwicz-Uzawa integrability of the broad class of discrete-choice additive random-utility models of individual consumer behavior with perfect substitutes preferences and divisible goods. We derive the corresponding indirect uility function and then establish a representative...
Persistent link: https://www.econbiz.de/10013334349
constrained airlines or by airlines operating in countries with underdeveloped financial systems. We show that airlines in …
Persistent link: https://www.econbiz.de/10014337795
Manufacturers of durable goods can encourage consumers facing transaction costs to upgrade by accepting used units as trade-ins. These "buyback schemes" increase demand for new units, but increase the supply of used units if trade-ins are resold. In this paper, I investigate the equilibrium...
Persistent link: https://www.econbiz.de/10013388853
literature to introduce an empirical framework for analyzing network competition among airlines. Airlines make market entry …-preference argument, and employs a state-of-the-art econometric method to conduct inference for entry cost parameters. Ignoring network … externality underestimates the benefits of operating an additional flight by 13.2%, and airlines would schedule 21.53% fewer one …
Persistent link: https://www.econbiz.de/10015056219
The growing discussions of impact investing and stakeholder capitalism have increased interest in measuring companies' social impact. We conceptualize corporate social impact as the welfare loss that would be caused by a firm's exit. To illustrate, we quantify the social impacts of 74 firms in...
Persistent link: https://www.econbiz.de/10014421228
Adverse selection is a classic market failure known to limit or "unravel"' trade in high-quality insurance and many other economic settings. While the standard theory emphasizes quality distortions, we argue that selection has another big-picture implication: it unravels competition among...
Persistent link: https://www.econbiz.de/10015145138
We hand-collect and standardize information describing all 3,055 antitrust lawsuits brought by the Department of Justice (DOJ) between 1971 and 2018. Using restricted establishment-level microdata from the U.S. Census, we compare the economic outcomes of a non-tradable industry in states...
Persistent link: https://www.econbiz.de/10014337831
Antitrust enforcement in the United States has declined since the 1960s. Building on several new datasets, we argue that this decline did not reflect a popular demand for weaker enforcement or any other kind of democratic sanction. The decline was engineered by unelected regulators and judges...
Persistent link: https://www.econbiz.de/10013361981
This article explores subjects in optimal income taxation characterized by recent research interest, practical importance in light of concerns about inequality, potential for misunderstanding, and prospects for advancement. Throughout, the analysis highlights paths for further investigation....
Persistent link: https://www.econbiz.de/10013334417