annual demand volatility have no effect on load factors of airlines at the destination-airline-year level … measures of productivity, however, will associate differences in demand volatility to differences in productivity when … adjusting factors of production is costly. I document this effect by comparing the influence of demand volatility on capacity …

compute firms' optimal decisions on investment, utilization and labor demand. Compared to the constant utilization model, the …

utilization in the U.S. airline industry. We present a simple theoretical model that predicts that lower demand realizations are … associated with higher demand volatility. This prediction is strongly supported by the results of estimating a panel GARCH …This paper studies the relationship between demand uncertainty — the key source of excess capacity — and capacity …

shape competition by investing into production capacity while being subject to unexpected demand shocks with persistence …. The model shows that a negative demand shock can facilitate cartel formation despite lowering collusive profits. This is … because lower demand reduces capacity utilization and makes competition more intense especially when capacities are durable …

demand. It looks at a market with social effects where consumers want to do what is popular, to buy what they believe others … certain naive consumers into believing that demand is greater than it actually is. This will in turn increase the willingness … demand is lower than expected, even when the number of naive consumers is arbitrarily small …