Airline passenger decisions determine operation of airlines and aircraft. Therefore, global air transport models need to consider these decisions. Thereby, we develop a discrete choice model for ...passenger decisions describing global passenger flows based on different parameters. The model distinguishes between passenger itineraries defined by attributes like ticket price, travel time and number of transfers. Additional attributes are added gradually. It is estimated using schedule and passenger demand data. Hence, based on topological structures of the air transport system, global passenger flows and elasticities can be identified. Additionally, we provide quantified results describing the elasticity of several types of attributes, the values of travel time, the quality of travel and compare them for different regions, itineraries and travel types.
•Discrete choice model for passenger decisions describing global passenger flows•Ticket price, travel time and number of flights and airline characteristics are the attributes•Global demand elasticities for market shares are calculated
Sutton and Trefler (2016) present a model that explains how a country's quality capability simultaneously affects per capita income and the sectoral mix of its exports. The model predicts an ...inverted‐U relationship between an exporter's income and its world market share of export. This paper examines whether the prediction is consistent with the time‐series variations of trade data. We find inverted‐U relationships in all three groups of markets. While market shares do eventually drop as income grows, it happens only when incomes are very high. In addition, exporters' global market progression described in Sutton and Trefler (2016) is accelerated with the presence of a “super” exporter, such as China. Lastly, we confirm the model's implication on how quality capability improvements affect market entry by presenting an inverted‐U relationship between market entry and income in middle‐rank group, with the relationship being negative in low‐rank group and positive in high‐rank group.
•We study the determinants of IPO underwriting market share in China.•Underwriting quality is overall positively related to underwriting market share.•Underwriter central government ownership is ...significantly related to market share.•Underwriting quality plays an increasingly important role in enhancing market share.
This paper investigates the determinants of initial public offering (IPO) underwriting market share in China. Using a sample of underwriters in China’s IPO market during 2004–2012, we find the following results. First, underwriting quality is overall positively related to underwriting market share. Second, individual underwriting quality measures are significantly related to market share as well: Affiliated star analysts are valued by both state-owned enterprise (SOE) and non-SOE (NSOE) issuers. The post-IPO performance of previous clients (industry specialization) is a significant determinant of market share in the SOE (NSOE) IPO market. Third, central government ownership of underwriters is a significant determinant of market share in the SOE market. Finally, a further test on regulatory change shows that underwriting quality is playing an increasingly important role in enhancing underwriting market share in China’s new issue reform era.
This paper explores how variables measuring firms' sustainable competitive advantages influence profitability persistence. Using a large sample of firms from MSCI 23 developed countries during ...1985–2013, I find that an index of economic rents (such as size and market share) significantly reduce profit mean reversion, whereas traditional barriers-to-entry measures do not lower mean reversion. Higher previous long-term performance and sustained market share are associated with lower future mean reversion in profitability. Outcomes dominated sources of advantages, although both were useful in predicting future profitability persistence.
•Sources of competitive advantage (such as size and market share) reduce mean reversion in profitability.•Traditional barriers-to-entry measures do not lower mean reversion in profits.•Higher previous outcomes such as long-term performance and sustained market share reduce mean reversion in profitability.•Outcomes of competitive advantages dominated sources of advantages in predicting future firm profitability persistence.
Imperfect information and inattention to energy costs are important potential motivations for energy efficiency standards and subsidies. We evaluate these motivations in the lightbulb market using a ...theoretical model and two randomized experiments. We derive welfare effects as functions of reduced-form sufficient statistics capturing economic and psychological parameters, which we estimate using a novel within-subject information disclosure experiment. The main results suggest that moderate subsidies for energy-efficient lightbulbs may increase welfare, but informational and attentional biases alone do not justify a ban on incandescent lightbulbs. Our results and techniques generate broader methodological insights into welfare analysis with misoptimizing consumers.
Purpose
This study aims to draw on the strategy–structure–performance framework to investigate baseline supply chain (BSC) practices as a function of how firms structure logistics and marketing mix ...activities to achieve market share in the emerging market (EM) supply chain ecosystems.
Design/methodology/approach
The authors validate the study’s conceptual framework with survey data collected in two contrasting EM supply chain ecosystems. They include supply chains in EM economies with an advanced logistics/distribution infrastructure such as China and those in economies with poor logistics/distribution infrastructure such as Ghana. The authors use ordinary least squares regression and structural equation modeling analysis to examine the relative market share outcomes of different configurations of logistics-marketing practices (logistics-affordability marketing, logistics-accessibility marketing, logistics-acceptability marketing, logistics-and awareness and full integration into BSC).
Findings
Key findings confirm that the integration of logistics with marketing activities into BSC practice is more pervasive in EMs with high logistics performance index, such as China than in firms in EMs with low logistics performance index, such as Ghana. Moreover, the authors confirm that integrating logistics and marketing into BSC generates higher market share performance than logistics- or marketing-only practices in China and Ghana. These differences are driven more by the firm’s strategic orientation than the demands of competitive market conditions.
Research limitations/implications
The study focuses on BSC integration activities in the logistics and marketing functions because researchers have not updated this issue for the past two decades.
Practical implications
The study results provide managers with much-needed empirical evidence of the strategic benefit of BSC integration under different supply chain ecosystems in the EMs.
Originality/value
Linking BSC activities in logistics management and marketing management mix activities within the 4As marketing mix framework provides evidence to support the argument that the 4As marketing mix is an appropriate planning framework for EMs’ unique ecosystems.
This paper investigates how the structure of the air transportation network affects air ticket prices in Brazil. Airlines serve specific airports in the vast Brazilian territory and, consequently, ...have unique air transportation network structures. Using more than 40 million airline-specific commercial flights, we extract topological patterns from these networks using complex network measurements. We then propose an economic meaning for these measures in the context of air transportation. Using microeconometric panel-data estimation, we find that the airports’ degree of substitutability (clustering coefficient) and peripheral location (authority score) are associated with lower average airfare prices. In contrast, the convenience of transportation (degree), measured by the number of different cities that an airport serves, and centrality (closeness) are attributes that raise the average price. Air convenience pricing is more pronounced at airports located inland than at capitals. We also look at how the airline-specific network structure affects the well-documented positive relationship between market power and air ticket prices. The relationship between local market power and the ticket price is stronger at airports located in inland municipalities. Our results suggest that public policies encouraging competition at inland airports are crucial for maintaining prices at adequate levels.
We compute missing growth due to imputation practices in Korea by applying the market share approach of Aghion et al. (2019) and investigate its contribution to the trend and the cyclicality of ...measurement errors in official inflation and GDP. We find that missing growth is strongly procyclical and that it correlates significantly to an oil shock and a monetary policy shock. The procyclical missing growth, together with the significant correlation with a monetary policy shock, provides additional difficulties in identifying the slope of the Phillips curve from officially measured statistics. Furthermore, missing growth complicates the policy tradeoff between inflation and output stabilization in the face of cost-push shocks, calling for a greater emphasis on inflation stabilization.
Market share contracts, a form of loyalty discounts, where the discount is contingent on the buyer meeting or exceeding a target share of total procurement, are used in many business to business ...(B2B) settings. We study the impact of such contracts on demand allocation, prices, and welfare in a setting where a single central B2B buyer procures multiple units of a product on behalf of a set of users with heterogeneous preferences. We find that linear pricing creates a demand distortion, which goes away with the use of market share contracts. These contracts serve as strategic tools for vendors whose products are strongly preferred by a substantial fraction of the users in the buying organization to shift the locus of competition and extract away rents from weaker rivals, and sometimes from buyers. The impact of such contracts on the welfare of the buyers is therefore ambiguous, but when these contracts are used, the overall surplus goes up as disutility from demand distortion is avoided. While both quantity threshold contracts and two‐part tariffs can replicate the efficiency properties of market share contracts when demand is deterministic, they cannot guarantee the avoidance of demand distortion when buyer demand is uncertain.
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