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dc.contributor.authorAghaie, Sina
dc.contributor.authorJavadinia, Amir
dc.contributor.authorCockrell, Seth
dc.identifier.citationSina Aghaie, Amir Javadinia & Seth A. Cockrell (2022) Price reactions to a rival’s market exit: evidence from the U.S. airline industry, Journal of Marketing Theory and Practice, DOI: 10.1080/10696679.2021.2008802en_US
dc.descriptionClick on the DOI to access this article (may not be free).en_US
dc.description.abstractWhile 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.en_US
dc.relation.ispartofseriesJournal of Marketing Theory and Practice;2022
dc.subjectAirline industryen_US
dc.subjectLowering pricesen_US
dc.titlePrice reactions to a rival’s market exit: evidence from the U.S. airline industryen_US
dc.rights.holder© 2021 Taylor & Francis Group, LLC.en_US

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