Entry and Competitive Structure in Deregulated Airline Markets: An Event Study Analysis of People Express
通过分析人民快运进入市场时现有航空公司的股价反应，研究放松管制航空市场的竞争结构，发现显著的航线特定利润或沉没成本，并揭示行业中的竞争本地化程度。
This paper proposes an alternative approach to the study of competitive structure in deregulated airline markets that avoids some of the weaknesses of previous studies. This approach uses reactions of incumbent airlines' stock prices to announcements of entry by People Express to shed light on competitive structure. These stock reactions reveal significant route-specific profits or sunk costs and also provide evidence on the degree of competitive localization present in the industry. The conclusions emerging from this analysis are corroborated by an examination of price, sales quantity and schedule changes that followed People Express entry.