Based on two strands of theoretical research, this paper provides new evidence on how fares are jointly affected by in-flight seat availability and purchasing date. As capacity-driven theories predict, it emerges that fares monotonically and substantially increase with the flights occupancy...

Building on the literatures on strategic momentum and interfirm cooperation, we develop and test a model of alliance formation that incorporates the distinction between alliances encompassing different corporate functions. We theorize that differences in functional purposes shape the learning...

We empirically investigate the capacity adjustments of major incumbent airlines facing the entry of a new low cost carrier in a secondary airport of a multiple airports region. We examine the effects of the threat of product repositioning constituted by the newcomer migrating operations to...

We develop a model of inter-temporal and intra-temporal price discrimination by airlines to study the ability of different discriminatory mechanisms to remove sources of inefficiency and the associated distributional implications. To estimate the model's multi-dimensional distribution of...

We examine the impact of airline codesharing on consumer choice behavior in non-stop international route markets. Using stated preference data, we document that consumer valuation of flights by alien foreign carriers is significantly higher if these flights are offered as codeshare products by...

We investigate the pricing behaviour of firms facing date-specific demand shocks, by focussing on Parisian hotels during a big event, the 2016 European Football Cup. Using a unique dataset, we document an initial propensity to set the same price for rooms on different match dates, although...

This paper studies incumbent price response to entry by low-cost carriers in the U.S. airline industry. I find that legacy carrier incumbents decrease their mean airfare, 10th percentile airfare, and 90th percentile airfare following entry by a low-cost carrier. Airfares decrease by a larger...

This essay surveys important contributions to the economics of bankruptcy. It is an introductory chapter for a forthcoming volume (from Edward Elgar Press) that compiles the work of legal scholars as well as economists working in the field of corporate finance. The essay begins with the...

This paper develops an events study to investigate the price effects of the acquisition of a financially distressed full-service carrier by a low-cost airline in Brazil. We account for the bankrupt carrier's survival network design strategies (SNDS) pursued during reorganization, which may be a...

Firms engage in mergers for many reasons, some of which create value for both the firm's shareholders and society, some that create value only for the firm's shareholders, and some that fail even to do that. A considerable body of research concludes that most mergers do not create value for...