Exit, Tweets, and Loyalty

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2021
Volume: 13
Issue: 2
Pages: 68-112

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Hirschman's Exit, Voice, and Loyalty highlights the role of "voice" when individuals confront an unexpected deterioration in quality. Yet, voice has received little attention. To motivate our empirical analysis, we develop a simple model of voice as the equilibrium of a relational contract between customers and firms. We use data on 4 million tweets to or about US airlines to study the relationship between quality, voice, and market structure. Voice increases when quality deteriorates. This relationship is greater for airlines that operate a large share of flights in a market. Supplemental analyses support a relational contracting role for voice.

Technical Details

RePEc Handle
repec:aea:aejmic:v:13:y:2021:i:2:p:68-112
Journal Field
General
Author Count
3
Added to Database
2026-01-25