التفاصيل البيبلوغرافية
| العنوان: |
Does Product Differentiation Soften Price Reactions to Entry? |
| المؤلفون: |
Huse, Cristian1 Cristian.Huse@hhs.se, Oliveira, Alessandro V. M.2 alessandro.oliveira@pq.cnpq.br |
| المصدر: |
Journal of Transport Economics & Policy. May2012, Vol. 46 Issue 2, p189-204. 16p. |
| مصطلحات موضوعية: |
*PRODUCT differentiation, *AIRLINE rates, *PRICING, *COMMERCIAL aeronautics, AERONAUTICAL flights |
| مستخلص: |
We examine the effects of entry on the pricing of legacy airlines facing a rapidly expanding low-cost newcomer. We estimate the timing and the determinants of responses allowing for asymmetry and product differentiation. We propose a decomposition procedure of time fixed-effects to control for unobserved heterogeneity, accounting for time-varying route-, city-, and carrier-specific unobservables. We find that incumbents do price-respond to actual but not to potential entry. The lack of preemption is due to financial distress, which precluded costly deterrence against a deep-pocketed newcomer. Our model also uncovers product differentiation stemming from more convenient flights. [ABSTRACT FROM AUTHOR] |
|
Copyright of Journal of Transport Economics & Policy is the property of Journal of Transport Economics & Policy and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| قاعدة البيانات: |
Business Source Index |
Full Text Finder