Publication of information and market response

The case of airline on time performance reports

Stephen Earl Foreman, Dennis G. Shea

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

This paper investigates market response to publication of on time performance information. Theory suggests that reduction in search costs generates more honest airlines and better quality service, a distribution of price-quality bundles, increased demand, exit by inefficient airlines and reduction of price rigidity. An ARIMA study of U.S. domestic airline operations finds that after publication of performance information the market generated better performance, increased quality distribution, enhanced demand, exit by four of fourteen airlines and reduced price-quality rigidity. Publication of information may improve performance in markets characterized by asymmetric information and high search costs.

Original languageEnglish (US)
Pages (from-to)147-162
Number of pages16
JournalReview of Industrial Organization
Volume14
Issue number2
DOIs
StatePublished - Jan 1 1999

Fingerprint

Rigidity
Costs
Market response
Airlines
Exit
Search costs
Asymmetric information
Service quality
Price rigidity

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

Cite this

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Publication of information and market response : The case of airline on time performance reports. / Foreman, Stephen Earl; Shea, Dennis G.

In: Review of Industrial Organization, Vol. 14, No. 2, 01.01.1999, p. 147-162.

Research output: Contribution to journalArticle

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