| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w20293 |
| 来源ID | Working Paper 20293 |
| A Model of Dynamic Limit Pricing with an Application to the Airline Industry | |
| Christopher Gedge; James W. Roberts; Andrew Sweeting | |
| 发表日期 | 2014-07-10 |
| 出版年 | 2014 |
| 语种 | 英语 |
| 摘要 | The one-shot nature of most theoretical models of strategic investment, especially those based on asymmetric information, limits our ability to test whether they can fit the data. We develop a dynamic version of the classic Milgrom and Roberts (1982) model of limit pricing, where a monopolist incumbent has incentives to repeatedly signal information about its costs to a potential entrant by setting prices below monopoly levels. The model has a unique Markov Perfect Bayesian Equilibrium under a standard form of refinement, and equilibrium strategies can be computed easily, making it well suited for empirical work. We provide reduced-form evidence that our model can explain why incumbent airlines cut prices when Southwest becomes a potential entrant into airport-pair route markets, and we also calibrate our model to show that it can generate the large price declines that are observed in the data. |
| 主题 | Microeconomics ; Market Structure and Distribution ; Economics of Information ; Industrial Organization ; Market Structure and Firm Performance ; Antitrust ; Industry Studies |
| URL | https://www.nber.org/papers/w20293 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/577966 |
| 推荐引用方式 GB/T 7714 | Christopher Gedge,James W. Roberts,Andrew Sweeting. A Model of Dynamic Limit Pricing with an Application to the Airline Industry. 2014. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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