EconPapers    
Economics at your fingertips  
 

Bankruptcy and product-market competition: Evidence from the airline industry

Federico Ciliberto () and Carola Schenone

International Journal of Industrial Organization, 2012, vol. 30, issue 6, 564-577

Abstract: We investigate the effects of Chapter 11 bankruptcy filings on product market competition using data from the US airline industry. We find: i) bankrupt airlines permanently downsize their national route structure, their airport-specific networks, and their route-specific flight frequency and capacity; ii) bankrupt airlines lower their route-specific prices while under bankruptcy protection, and increase them after emerging. We do not find robust evidence of significant changes by the bankrupt airline's competitors along any of the dimensions above.

Keywords: Airline industry; Bankruptcy; Product market competition; Chapter 11 (search for similar items in EconPapers)
JEL-codes: G33 L13 L93 K2 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718712000781
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Bankruptcy and Product-Market Competition: Evidence from the Airline Industry (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:30:y:2012:i:6:p:564-577

DOI: 10.1016/j.ijindorg.2012.06.004

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-07-07
Handle: RePEc:eee:indorg:v:30:y:2012:i:6:p:564-577