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

B-Tier
Journal: International Journal of Industrial Organization
Year: 2012
Volume: 30
Issue: 6
Pages: 564-577

Authors (2)

Ciliberto, Federico (University of Virginia) Schenone, Carola (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:indorg:v:30:y:2012:i:6:p:564-577
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25