search query: @freeterm Price war / total: 1
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| Author: | Busse, M. |
| Title: | Firm financial condition and airline price wars |
| Journal: | RAND Journal of Economics
2002 : SUMMER, VOL. 33:2, p. 298-318 |
| Index terms: | Economic conditions Airlines Price policy |
| Freeterms: | Price war |
| Language: | eng |
| Abstract: | Using data on 14 major airlines between 1985 and 1992, the author tests the hypothesis that firms in worse financial condition are more likely to start price wars. Empirical results suggest that this is true, particularly for highly leveraged firms. The article also explores which firms join existing price wars and finds that a firm is more likely to enter a price war the greater the share of its traffic on routes served by the price-war leader. |
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