Localized competitive advantage and price reactions to entry: Full-service vs. low-cost airlines in recently liberalized emerging markets

Oliveira, Alessandro V. M.; Huse, Cristian

doi:10.1016/j.tre.2008.09.003

Cited by 52 publications

(27 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Information on customer satisfaction and top management teams are also not available in the annual report and therefore are excluded from the study. Another important variable is ticket price, and it has been used in performance (Duliba et al, 2001), price (Mantin and Koo, 2009;Oliveira and Huse, 2009;Gaggero and Piga, 2010;Wan et al, 2009), and Choice modelling (Rose et al, 2012;Rose et al, 2005b;Rose et al, 2005a;Bliemer and Rose, 2011) of airline companies. For airline performance modelling, this indicator is suitable for the city pair level and not at the industrial level.…”

Section: Discussionmentioning

confidence: 99%

The influence of firm age on the relationships of airline performance, economic situation and internal operation

Ismail

Jenatabadi

2014

Transportation Research Part A: Policy and Practice

View full text Add to dashboard Cite

a b s t r a c tThe ways in which airline performance depends on the economic situation and internal operation are well established in the literature. One of the contextual factors that may change the nature of these relationships is firm age. As such, the aim of this study is to investigate the moderating influence of firm age on airline performance outcomes. Thirty airline companies from the Asia Pacific region were selected, and relevant data from 2006 to 2011 were collected. It can be deduced that company experience or firm age can help in taking control of the relationship between the constructs; thus, this measurement acts as a moderator in the research model.

show abstract

Section: Discussionmentioning

confidence: 99%

The influence of firm age on the relationships of airline performance, economic situation and internal operation

Ismail

Jenatabadi

2014

Transportation Research Part A: Policy and Practice

View full text Add to dashboard Cite

show abstract

“…It is our belief that any analysis of the effects of mergers in the airline market ought to account for the perceived product differentiation between airline types. And, indeed, a number of recent papers have stressed the importance of product differentiation in this market (Oliveira and Huse, 2009;Fu et al, 2011). Drawing on data for Spanish domestic flight routes for the period 2001-2010, we use a difference-in-difference estimator to examine the effects on prices and frequencies of the merger between a network airline (Iberia) and two low-cost airlines (Clickair and Vueling).…”

Section: Introductionmentioning

confidence: 99%

An Empirical Analysis of a Merger between a Network and Low-Cost Airlines

Fageda

Perdiguero

2011

SSRN Journal

View full text Add to dashboard Cite

Abstract:We use a difference-in-difference estimator to examine the effects of a merger involving three airlines. The novelty lies in the examination of this operation in two distinct scenarios: (1) on routes where two low-cost carriers and (2) on routes where a network and one of the low-cost airlines had previously been competing. We report a reduction in frequencies but no substantial effect on prices in the first scenario, while in the second we report an increase in prices but no substantial effect on frequencies. These results may be attributed to the differences in passenger types flying on these routes.

show abstract

“…Instead, we opt for an instrumental variable strategy that utilizes a rank ordering of the advertisement gap variable. The rank-order instrumental variable approach is common across a diversity of literature (e.g., Cubbin and Stern 2006;de Figueiredo and Edwards 2007;Edwards and Waverman 2006;Evans and Kessides 1993;Kroszner andStratmann 1998, 2005;Oliveira and Huse 2009;Stratmann 2004;Wald 1940). The simultaneity problem of advertisements and election results is similar to the problems faced by Kroszner andStratmann (1998, 2005) in their studies of political action committees, published in the American Economic Review and Journal of Law and Economics, respectively, and we apply their rank ordering approach to the advertisement gap variable.…”

Section: Methodsologymentioning

confidence: 98%

Mind the Gap? Political Advertisements and Congressional Election Results

Jones

Jorgensen²

2012

Journal of Political Marketing

View full text Add to dashboard Cite

Do political television advertisements influence congressional election results? We test a hypothesis that candidates increase their vote share by increasing their advertisement airings relative to their opponent's airings (i.e., ''mind the gap''). Using aggregate advertising data over three election cycles, we employ a two-stage least squares estimation with a rank-order instrumental variable, finding that the advertisement gap explains shifts in vote share after controlling for variables standard to congressional election modeling and advertisement volume. This methodological approach mitigates the endogenous relationship between advertisement airings and election results.

show abstract

Localized competitive advantage and price reactions to entry: Full-service vs. low-cost airlines in recently liberalized emerging markets

Cited by 52 publications

References 20 publications

The influence of firm age on the relationships of airline performance, economic situation and internal operation

The influence of firm age on the relationships of airline performance, economic situation and internal operation

An Empirical Analysis of a Merger between a Network and Low-Cost Airlines

Mind the Gap? Political Advertisements and Congressional Election Results

Contact Info

Product

Resources

About