Bosch, Jean-Claude; Eckard, E Woodrow; Singal, Vijay - In: Journal of Law and Economics 41 (1998) 2, pp. 503-19
We examine stock market reactions to commercial air crashes to test the hypothesis that consumers respond by switching to rival airlines and/or flying less. We focus on the stock price reactions of airlines not involved in the crash. If switching occurs, noncrash airlines should benefit to the...