pricewar(pdf36)英文版简介开始
When Will an Airline Stand Its Ground?
An Analysis of Fare Wars
LEOLA B. ROSS*
Department of Economics
Brewster Building
East Carolina University
Greenville, NC 27858-4353
ECROSS@ecuvm.cis.ecu.edu
February 1997
ABSTRACT The research presented in this paper focuses on the recent onset of price
wars in the airline industry while accommodating multimarket contact, multiple products,
and a dramatic price distribution. An important innovation in this study is in developing
a price war definition using a rank dominance criterion. A second innovation is the
extension of a probit model to a bivariate proBIt, which assesses the behavior of
multimarket firms after a price war occurs. In particular, a carrIEr may choose to stay
and fight when a price war erupts or may simply leave a route. CarrIErs will engage in
fare wars when market shares change, higher elasticity customers patron the route, and
lOAd factors drop. CarrIEr will leave routes after a fare war when offering service to
another carrIEr’s hub but will remain steadfast in their own spheres of influence.
Keywords: Price Wars, Airline Industry StudIEs, Multimarket Contact
JEL classifications: L13, L93
Word Count: 7,597
pricewar(pdf36)英文版简介结束,下载后阅读全部内容 |
| 
