DETERMINANTS OF PRICE REACTIONS TO ENTRY IN THE US AIRLINE INDUSTRY

The reactions of established air carriers to new entrants has been a contentious issue in the United States over the past several years. This paper examines the entrant characteristics and strategies, incumbent characteristics, and market characteristics that govern incumbent carrier reactions. Using data on 981 reactions to entry by incumbent carriers, the paper assesses the impact of these carrier and market specific factors on incumbent price responses following entry both in the short and longer run. The results from the analysis can be useful to help predict the likely reactions to entry and therefore useful to airline managers.

• Corporate Authors:

  University of Nebraska, Omaha

  Aviation Institute, 60th and Dodge Street
  Omaha, NE  United States  68182-0508
• Authors:
  • Dresner, M
  • Lin, J C
  • Windle, R
• Conference:
  • The Conference Proceedings of the 1999 Air Transport Research Group (ATRG) of the WCTR Society on Air Transportation Operations and Policy
  • Location: City University of Hong Kong, Hong Kong
  • Date: 1999-6-6 to 1999-6-8
• Publication Date: 1999-9

Language

• English

Media Info

• Features: References; Tables;
• Pagination: 22p

Subject/Index Terms

• TRT Terms: Airlines; Competition; Policy making; Prices; Strategic planning
• Geographic Terms: United States
• Subject Areas: Aviation; Policy;

Filing Info

• Accession Number: 00791148
• Record Type: Publication
• Report/Paper Numbers: UNOAI Report 99-7,, Volume 3
• Files: TRIS
• Created Date: Apr 11 2000 12:00AM