How do Incumbents Respond to the Threat of Entry? Evidence from the Major Airlines
---- Acknowledgements ----
We thank Gary Becker, Severin Borenstein, Dennis Carlton, Edward Glaeser, Robert Gordon, Justine Hastings, Elena Krasnokutskaya, Mara Lederman, Chris Mayer, Nancy Rose, Fiona Scott Morton, Mike Whinston, anonymous referees, and seminar participants at University of California San Diego, Chicago, Dartmouth (Tuck), Illinois, Minneapolis Federal Reserve Bank, Minnesota, Massachusetts Institute of Technology, North Dakota, Northwestern, Pittsburgh, Rochester, Wharton, Wisconsin, Yale, the Society for Economic Dynamics Annual Meeting, the Harvard Business School Strategy Conference, the NET Institute Conference, and the joint Federal Reserve Bank-George Washington University seminar for helpful comments. Brian Melzer and Luis Andres provided superior research assistance. Financial support from the NET Institute (http://www.NETinst.org) is gratefully acknowledged. Goolsbee also thanks the National Science Foundation, the Initiative on Global Markets and the American Bar Foundation for financial support.