Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in...

I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the route network expansion of low-cost airlines to identify routes where the probability of future entry increase dramatically. I find that when a large portion of their market is...

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....

This paper examines the relationship between airline profitability and market share in the context of contemporary strategic business theory.The paper provides a general overview of the business environment in which airlines operate, provides some of the organizational goals airlines pursue, and...

Since airlines were deregulated, shareholders, management and workers, already well organized, have suffered severe, sometimes catastrophic losses, while the benefits have been spread among unorganized consumers and the investors and managers of new entrant airlines, which themselves have had a...

This paper analyzes conditions for co-existence of hub-and-spoke and point-to-point networks in the airline industry, in which case passengers are segmented between the non-stop and one-stop services. In the baseline model, the monopoly airline's ability to segment the market and effectively set...

Low cost carriers' (LCCs) pricing system is characterized by a single class of booking that starts with a minimum fare and then monotonically increases its value over time. This is a form of discriminating prices although markets are not physically or temporal separated. Using game theory...

I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the route network expansion of low-cost airlines to identify routes where the probability of future entry increases dramatically. I find that when strategic routes are threatened,...

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...

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...