According to Goolsbee and Syverson, How Did Incumbent Airlines Respond

question 56

Multiple Choice

According to Goolsbee and Syverson, how did incumbent airlines respond to the entry of Southwest Airlines?

• A) They raised airfares just before Southwest's arrival and then cut airfares when Southwest began operating.
• B) They lowered airfares just before Southwest's arrival and then raised airfares when Southwest began operating.
• C) They began cutting airfare as early as one to two years before Southwest began operating from the same airport.
• D) They kept airfares unchanged before Southwest's arrival and then lowered airfares when Southwest began operating.

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