How do Incumbents Respond to the Threat of Entry? Evidence from the Major Airlines
研究在位航空公司如何应对潜在进入威胁，发现西南航空进入前，在位企业大幅降价，且降价仅发生在受威胁航线上，超过一半的价格效应发生在实际进入之前。
We examine how incumbents respond to the threat of entry by competitors (as distinct from how they respond to actual entry).We look specifically at passenger airlines, using the evolution of Southwest Airlines' route network to identify particular routes where the probability of future entry rises abruptly.We find incumbents cut fares significantly when threatened by Southwest's entry.Over half of Southwest's total impact on incumbent fares occurs before Southwest starts flying.These cuts are only on threatened routes, not those out of non-Southwest competing airports.The evidence on whether incumbents are seeking to deter or accommodate entry is mixed.