IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Asymmetric effects, regulatory focus, and attribute satisfaction—Mixed experimental evidence in airline overbooking recovery

  • Zhang, Xiang
  • Chen, Rongqiu

Asymmetric effects and regulatory focus are two fundamental rules behind an individual’s judgment and motivation. While recent research on loss aversion presents mixed evidence, the literature on satisfaction studies provides little insight into the influence of regulatory systems on satisfaction. Moreover, literature regarding the potential interactions between asymmetric effects and regulatory focus is missing. In this paper, we examined the inconsistent evidence regarding loss aversion and various asymmetric effects in different types of regulatory focus at the attribute level. We conducted an experimental study in a setting of airline overbooking recovery in the Chinese airline industry. Our evidence shows that regulatory focus influences asymmetric effects. Participants with different types of regulatory focus have different priorities in recovery attributes and exhibit quite different patterns of asymmetric effects. We identify four different asymmetric effects and find one failure to present — an effect in our study. In addition, we present a regulatory focus-based dummy regression model, which is a more general method that nests previous research on attribute-satisfaction as a special case. The results, together with the newly proposed passenger classification (time fixed versus time flexible), underpin a more realistic assumption for future theory building and can thus help airline companies design a better recovery strategy for revenue management.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/S0925527312003301
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal International Journal of Production Economics.

Volume (Year): 142 (2013)
Issue (Month): 1 ()
Pages: 27-36

as
in new window

Handle: RePEc:eee:proeco:v:142:y:2013:i:1:p:27-36
Contact details of provider: Web page: http://www.elsevier.com/locate/ijpe

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Aaker, Jennifer L. & Lee, Angela Y., 2006. "Understanding Regulatory Fit," Research Papers 1910, Stanford University, Graduate School of Business.
  2. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-48, December.
  3. Tversky, Amos & Kahneman, Daniel, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1039-61, November.
  4. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:142:y:2013:i:1:p:27-36. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.