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   Bankruptcy in international vs domestic markets: Evidence from the airline industryMantin, Benny  ; ; et alin Transportation Research. Part A, General (2020), 132 We study the effects of Chapter 11 bankruptcy protection on competitive product pricing in both domestic and international markets using data from the airline industry. We find a decline of about 5% in ... [more ▼] We study the effects of Chapter 11 bankruptcy protection on competitive product pricing in both domestic and international markets using data from the airline industry. We find a decline of about 5% in domestic markets and an even more significant drop in international markets. Further, in international markets the competing carriers respond by dropping their prices as well, whereas they slightly increase them domestically. By contrast, existing literature considers only domestic markets finding a more moderate fare drop of about 3% in domestic markets by the bankrupt carrier, with mixed results on the fare drop by competitors. [less ▲] Detailed reference viewed: 204 (12 UL) Managing Strategic Inventories under Investment in Process ImprovementMantin, Benny ; in European Journal of Operational Research (2019), 279(3), 782-794 In supplier-retailer interactions, the retailer may carry inventories strategically as a bargaining mechanism to induce the supplier to drop the future wholesale price. As per Anand, Anupindi, and Bassok ... [more ▼] In supplier-retailer interactions, the retailer may carry inventories strategically as a bargaining mechanism to induce the supplier to drop the future wholesale price. As per Anand, Anupindi, and Bassok (2008), the introduction of strategic inventories always benefits the supplier and possibly also the retailer if the holding cost is sufficiently low (due to the contract-space-expansion effect). Is such a move beneficial for the supply chain agents in the presence of process improvement efforts? Such efforts—initiated by suppliers—ultimately reduce production cost and may translate into lower wholesale prices as well as lower consumer prices. We find that strategic inventories may stimulate investment in process improvement when the holding cost is high (as it encourages the supplier to further reduce future cost to eliminate the need for strategic inventories), but may suppress such investment when the holding cost is low (as strategic inventories are cheap to stock and hence cannot be eliminated). Our key result, contrary to the existing literature, is that strategic inventories may be harmful to both supply chain agents in the presence of process improvement. In that case, the supplier effectively over-invests in process improvement efforts, inducing the retailer to reduce the stock of strategic inventories, while reversing the benefits of the contract-space-expansion effect. We also consider variations to the model, whereby the supplier may delay his investment decision, the holding cost may be a function of the wholesale price set by the supplier, consumers may behave strategically, and the planning horizon may consist of multiple periods. [less ▲] Detailed reference viewed: 182 (0 UL)Inventory Decisions in the Presence of Strategic Customers: Theory and Behavioral Evidence; Mantin, Benny ; in Production and Operations Management (2019), 28(2), 374-392 We consider the inventory decision of a retailer facing strategic customers. We develop a behavioral theory that accounts for reference dependence, which makes predictions on how the presence of strategic ... [more ▼] We consider the inventory decision of a retailer facing strategic customers. We develop a behavioral theory that accounts for reference dependence, which makes predictions on how the presence of strategic customers leverages retailer behavior. Specifically, the reference-dependent retailer shall decrease her order quantity when there are more strategic customers in the population. As such, the conventional pull-to-center bias for newsvendor is generalized, since the presence of strategic consumers may induce the retailer to pull her order further below the center even when the production cost is low. Furthermore, increasing proportion of strategic customers reduces the retailer's ordering bias under low cost, yet amplifies it when the cost is high. Our subsequent experiments find pull-below-center effect, validate the theoretical predictions, and establish the asymmetry of reference dependence with the estimated behavioral parameters. We also study extensions to our model and carry out robustness checks of our experimental results. [less ▲] Detailed reference viewed: 360 (50 UL)Chapter 11 and the Level Playing Field: Should Chapter 11 be Considered as a Subsidy?Mantin, Benny ; ; et alin Journal of Air Transport Management (2019), 74 This paper assesses whether Chapter 11 is a form of subsidy for US airlines. US airlines have used Chapter 11 to restructure their operations. This has been criticized as a subsidy by major non US ... [more ▼] This paper assesses whether Chapter 11 is a form of subsidy for US airlines. US airlines have used Chapter 11 to restructure their operations. This has been criticized as a subsidy by major non US airlines and governments for a long time and recently, in the “level playing field” debate. Applying legal and economic perspectives of subsidy, we examine the different opportunities of Chapter 11 to reduce airlines’ costs. It is argued that most of the forms available, such as the modification of collective bargaining, do not constitute a subsidy. Only the termination of pension plans might involve a subsidy, but only using a legal definition of doubtful relevance since there is normally no use of public funds. [less ▲] Detailed reference viewed: 101 (3 UL)Price volatility and market performance measures: The case of revenue managed goodsMantin, Benny ; in Transportation Research. Part E, Logistics and Transportation Review (2018), 120(December), 35-50 The operational outcome of Revenue Management (RM) is manifested in different magnitudes of market level price volatilities. In this paper we take an analytics approach to the possible use of pricing data ... [more ▼] The operational outcome of Revenue Management (RM) is manifested in different magnitudes of market level price volatilities. In this paper we take an analytics approach to the possible use of pricing data of revenue-managed goods to support market analysis. Quantifying the relationship between market-level price volatility in the airline industry and various market-level performance metrics, we find that higher levels of price volatility are associated with higher levels of transacted fares, lower load factors, higher revenues, and increased transacted fare dispersion. This suggests the potential in utilizing market price volatility as an input for market analytics. [less ▲] Detailed reference viewed: 161 (3 UL) Strategic inventories with quality deteriorationMantin, Benny ; in European Journal of Operational Research (2017), 258(1), 155-164 Detailed reference viewed: 172 (16 UL)Selling to strategic consumers: on the benefits of consumers’ valuation uncertainty and abundant inventory; Mantin, Benny in Journal of Revenue and Pricing Management (2017) Detailed reference viewed: 193 (6 UL)P2P Marketplaces and Retailing in the Presence of Consumers' Valuation Uncertainty; ; Mantin, Benny in Production and Operations Management (2017), 26(3), 509--524 Detailed reference viewed: 202 (8 UL)Dynamic Pricing in the Presence of Myopic and Strategic Consumers: Theory and Experiment; Mantin, Benny ; in Production and Operations Management (2017), 26(1), 116--133 Detailed reference viewed: 160 (10 UL)Fare Prediction Websites and Transaction Prices: Empirical Evidence from the Airline IndustryMantin, Benny ; in Marketing Science (2016), 35(4), 640--655 Detailed reference viewed: 150 (2 UL)Airport privatization in international inter-hub and spoke networks; Mantin, Benny in Economics of Transportation (2015), 4(4), 189--199 Detailed reference viewed: 106 (4 UL)Government and company contracts: The effect on service and prices in international airline markets; Mantin, Benny in Economics of Transportation (2015), 4(3), 166--177 Detailed reference viewed: 126 (9 UL)Forecasting sales of new virtual goods with the Elo rating system; ; Mantin, Benny in Journal of Revenue and Pricing Management (2014), 13(6), 457--469 Detailed reference viewed: 124 (4 UL)The effect of competition on R&D portfolio investments; Mantin, Benny ; in Production and Operations Management (2014), 23(8), 1439--1449 Detailed reference viewed: 102 (1 UL)The Strategic Role of Third-Party Marketplaces in RetailingMantin, Benny ; ; in Production and Operations Management (2014), 23(11), 1937--1949 Detailed reference viewed: 141 (3 UL) |
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