Price reactions to a rival’s market exit: evidence from the U.S. airline industry

IF 4.4 Q2 BUSINESS

Journal of Marketing Theory and Practice Pub Date : 2022-02-04 DOI:10.1080/10696679.2021.2008802

S. Aghaie, A. Javadinia, Seth Cockrell

引用次数: 2

Abstract

ABSTRACT While antecedents of a rival’s exit have been extensively investigated, how a rival’s exit affects the market has been barely examined. Drawing on the contestable market theory, and utilizing a rich dataset of market exits in the airline industry, the authors investigate how incumbents respond to a rival’s exit by adjusting their prices. Contrary to widespread expectations, incumbents cut prices by 7% as soon as the rival leaves the market and keep their prices lower than the pre-exit level up to eight quarters afterward. The authors discuss the contributions to the marketing literature and provide actionable insights to managers and policymakers.

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竞争对手退出市场后的价格反应：来自美国航空业的证据

虽然竞争对手退出的前因已经被广泛调查，但竞争对手的退出如何影响市场却几乎没有被研究过。利用可竞争市场理论，并利用航空业市场退出的丰富数据集，作者调查了现有企业如何通过调整价格来应对竞争对手的退出。与普遍预期相反，竞争对手一退出市场，老牌企业就降价7%，并在退出前的8个季度内保持价格低于退出前的水平。作者讨论了对市场营销文献的贡献，并为管理者和决策者提供了可操作的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Marketing Theory and Practice BUSINESS-

CiteScore

6.80

自引率

6.70%

发文量

期刊介绍： The Journal of Marketing Theory & Practice is devoted to the publication of peer-reviewed articles addressing substantive, managerial issues in marketing. In the context of developing, enhancing, and disseminating marketing knowledge, JMTP publishes both conceptual and empirical work, so long as the work provides strong implications for the managerial practice of marketing. Unlike other marketing journals that may be more focused on specific methodological approaches, deal with theoretical issues without regard to application, or represent various subfields of marketing, JMTP is positioned as a general marketing journal affording a quality outlet for more managerially-oriented research across the scope of the field.