Rivalry and Forbearance in the European Airline Industry: Evidence of an Inverted U-Shaped Competitive Pattern1

Abstract

Cet article propose et teste un modèle théorique qui suggère que la relation entre le niveau de contact multi-territoires (ou multipoints) et la rivalité entre compagnies aériennes européennes se caractérise par une forme en U inversé. Utilisant un échantillon important de compagnies aériennes sur la période 2002-2006, nous offrons une confirmation empirique de la relation en U inversé entre contacts multi-territoires et rivalité mesurés par les entrées et sorties des territoires d’un concurrent. Nous en concluons que la concurrence entre compagnies aériennes suit des périodes de rivalité et de retenue, peut-être indépendamment de la période et du contexte institutionnel.This study develops and tests a theoretical framework which suggests that the relationship between the level of multi-territory (or multi-point) contact and rivalry takes the form of an inverted U-shaped relationship. Drawing on a large sample of European airlines over the period 2001-2006, we provide empirical support for the inverted U-shaped relationship between multi-territory contact and rivalry as reflected by entries into and exits from the territory of a competitor. We conclude that competition between firms exhibits successive periods of rivalry and forbearance, possibly independently of time and institutional settings.Este estudio desarrolla y prueba un modelo teórico que sugiere que la relación entre el nivel de contacto multiterritorial (o multipuntos) y la rivalidad entre compañías aéreas europeas adopta la forma de una U invertida. Basándose en una amplia muestra de las compañías aéreas europeas durante el período 2001-2006, se proporciona una confirmación empírica de la relación en forma de U invertida entre contacto multiterritorial y rivalidad, como se refleja en las entradas y salidas del territorio de un competidor. Se concluye que la competencia entre las empresas muestra períodos sucesivos de la rivalidad y de reserva, quizás independientemente del período y del contexto institucional

Coopetition Under Alliance? Applying Awareness-Motivation-Capability Competitive Dynamics Perspective

“…Mishra (2013) used AMC competitive dynamic theory to analyze U.S. manufactur-ers and demonstrated that competition can be imitated to improve industry development. Ghertman and Guedri (2012) demonstrated that the AMC model can enable companies to manage the entire competition process and enhance competition. This study aims to use AMC competitive dynamic theory to analyze historical data of airline alliances, including actions of all airline companies.…”