Firm Financial Condition and Airline Price Wars

A firm that knows that cutting price may trigger a price war must weigh present versus future gains and losses when considering such a move. The firm's financial situation can affect how it values such tradeoffs. Using data on 14 major airlines between 1985 and 1992, I test the hypothesis that...

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Bibliographic Details
Published in:The Rand journal of economics 2002-07, Vol.33 (2), p.298-318
Main Author: Busse, Meghan
Format: Article
Language:English
Subjects:
Air transportation industry
Air travel
Airline industry
Airlines
Bankruptcy
Business structures
Companies
Economic research
Economic theory
Economics
Enterprises
Finance
Financial leverage
Financial performance
Instrumental variables estimation
Macroeconomics
Passengers
Price competition
Price cuts
Price wars
Prices
Pricing
Studies
Tradeoff analysis
Transport economics
War
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