competitive "localization" existing in the deregulated airline industry through a more complete picture of the nature of profits or sunk costs present in these markets. Third, it sheds light on the clean test of contestable market theory. Second, it provides evidence on the inferences drawn in these analyses. In this paper, we consider an alternative approach to we focus on the effects of these entry events, we also examine the relationship between price and market structure in the degree of recent papers have studied the price and quantity changes that uses stock price reactions of competitive behavior in this industry. The analysis sheds light on are those involving People Express Airline in 1984 and 1985. To provide a A number of entry announcements to shed light on three issues. First, it offers the industry. The particular entry events that occurred following entry. a cross-sectional analysis of city-pair markets. Yet, while interesting, several potential difficulties underlie that level
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RePEc JEL Classification IDEAS Related research Download reference. Entry, Contestability, and Deregulated Airline Markets: An Event Study Analysis or Economics, Vol. 23, No. 4, pp. 445-462, Winter 1992. File URL: Schwert, G William, 1981. "
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