English, Article edition: Financial Distress and US Airline Fares Christian Hofer; Martin Dresner; Robert Windle

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/33151
Physical Description
  • article
Language
  • English

Edition details

Title
  • Financial Distress and US Airline Fares
Author
  • Christian Hofer
  • Martin Dresner
  • Robert Windle
Physical Description
  • article
Notes
  • This paper examines the impact of firm financial distress and bankruptcy on an airline's pricing behaviour. Three theoretical rationales are set forth: the supply-side rationale suggests that the bankrupt firm's lower operating costs may result in lower prices; from a demand perspective, distressed firms' prices may be lowered in response to reduced consumer demand; and the strategic rationale then suggests that distressed firms may reduce prices and sell off inventory to generate cash for long-term survival. The hypotheses are tested by estimating price and output equations with data from the US airline industry. The results provide support for the supply-side and demand-side rationales and confirm the general contention that distressed carriers' fares are lower, all other things being equal. © 2005 LSE and the University of Bath
  • RePEc:tpe:jtecpo:v:39:y:2005:i:3:p:323-340
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment