Arbeitspapier
Measuring strategic firm interaction in product-quality choices: The case of airline flight frequency
This paper investigates strategic interaction among airlines in product-quality choices. Using an instrumental variables approach, the paper estimates flight-frequency reaction functions, which relate an airline's frequency on a route to its own characteristics and to the frequencies of competing airlines. A positive reaction function slope is found in some cases, indicating the presence of strategic interaction in the choice of frequencies. The paper also asks whether multimarket contact generates mutual forbearance in frequency competition, finding no evidence for such an effect.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 4066
- Classification
-
Wirtschaft
Market Structure, Firm Strategy, and Market Performance: General
Air Transportation
- Subject
-
airlines
reaction function
product quality
flight frequency
Luftverkehrsgesellschaft
Dienstleistungsqualität
Wettbewerb
Reaktionsfunktion
Theorie
Schätzung
USA
- Event
-
Geistige Schöpfung
- (who)
-
Brueckner, Jan K.
Luo, Dan
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brueckner, Jan K.
- Luo, Dan
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2013