Exit, Tweets and Loyalty / Joshua S. Gans, Avi Goldfarb, Mara Lederman.

Format:

Book

Author/Creator:

Gans, Joshua S.

Contributor:

National Bureau of Economic Research.

Goldfarb, Avi.

Lederman, Mara.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23046.

NBER working paper series no. w23046

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

Hirschman's Exit, Voice, and Loyalty highlights the role of "voice" in disciplining firms for low quality. We develop a formal model of voice as a relational contact between firms and consumers and show that voice is more likely to emerge in concentrated markets. We test this model using data on tweets to major U.S. airlines. We find that tweet volume increases when quality - measured by on-time performance - deteriorates, especially when the airline operates a large share of the flights in a market. We also find that airlines are more likely to respond to tweets from consumers in such markets.

Notes:

Print version record

January 2017.