Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5078493 | International Journal of Industrial Organization | 2008 | 15 Pages |
Abstract
A legislative change in takeoff and landing restrictions at LaGuardia Airport provides an opportunity to study the effect of an exogenous shock to product quality on prices in the airline industry. I test how the price response varies with the degree of competition in the market. I find that prices fall by $1.42 on average for each additional minute of flight delay, and that the price response is substantially larger in more competitive markets.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Silke J. Forbes,