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We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish conditions under which the equilibrium is unique and converges to a system of differential equations. Using unique and comprehensive pricing and bookings data for competing...
Persistent link: https://www.econbiz.de/10013362001
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
We investigate the effects of private equity on product markets using price and sales data for an extensive number of consumer products. Following a buyout, target firms increase sales 50% more than matched control firms. Price increases--roughly 1% on existing products--do not drive this...
Persistent link: https://www.econbiz.de/10012481630
We study specialized lending in a credit market competition model with private information. Two banks, equipped with similar data processing systems, possess "general" signals regarding the borrower's quality. However, the specialized bank gains an additional advantage through further...
Persistent link: https://www.econbiz.de/10014486246
. 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
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
dynamic airline pricing accounting for both sources of price adjustments using novel flight-level data. I use the model … estimates to evaluate the welfare effects of dynamic airline pricing. Relative to uniform pricing, dynamic pricing benefits …
Persistent link: https://www.econbiz.de/10012599279
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/10012461424
The safety of the commercial airline industry has attracted considerable public attention and debate since economic … deregulation of the industry in 1978. These concerns have energized economic research on three aspects of airline safety. First …, has the level of airline safety declined since deregulation? Research on this topic investigates whether heightened public …
Persistent link: https://www.econbiz.de/10012475216