Research Article
Effects of Southwest Airlines on Carrier Profits and Entry Probabilities
| Competitive effect | (I) | (II) |
| SW nonstop on non-SW nonstop | [–24.20, –20.52] | | SW nonstop on non-SW connect | [–14.57, –11.56] | SW connect on non-SW nonstop | [–2.95, –0.49] | SW connect on non-SW connect | [–5.89, –4.78] | SW nonstop on FSC nonstop | | [–18.56, –14.70] |
| FSCs: AA, DL, and UA | SW nonstop on JetBlue nonstop | | [–22.54, –18.76] | SW nonstop on small LCC nonstop | [–28.39, –24.02] | SW nonstop on FSC connect | [–12.02, –10.55] | SW nonstop on JetBlue connect | [–16.76, –12.51] | SW nonstop on small LCC connect | [–18.12, –13.66] | SW connect on FSC nonstop | [–0.84, 0.94] | SW connect on JetBlue nonstop | [–2.93, –1.10] | SW connect on small LCC nonstop | [–3.35, –1.72] | SW connect on FSC connect | [–4.05, –3.23] | SW connect on JetBlue connect | [–8.60, –6.15] | SW connect on small LCC connect | [–6.37, –4.43] |
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Note. For robustness check, the simulation is redone by setting . |