We examine if and how incumbent firms respond to entry and entry threats using non-price modes of competition. Our analysis focuses on airline service quality. We find that incumbent on-time performance (OTP) actually worsens in response to entry, and even entry threats, by Southwest Airlines....

We examine how mergers affect quality provision by analyzing five U.S. airline mergers, focusing on on-time performance (OTP). We find that airline mergers have minimal negative impacts on OTP, and likely result in long-run improvements due to efficiencies. Importantly, we show that this finding...

Different framing of the same duration (1 year, 12 months, 365 days) can influence consumers’ impressions of subjective duration, and thus affect their judgments and decisions. The authors propose that ironically, self-relevance amplifies this duration framing effect. Consumers for whom a...