A working paper from economics professors Gaurab Aryal and Federico Ciliberto, and Ph.D. candidate Benjamin T. Leyden, all of UVA, concludes that when legacy carriers communicated about capacity discipline to investors in a given quarter, the average number of seats offered in an origin-destination market decreased by 1.45 percent in the next quarter. The effect is entirely driven by the legacy airlines, the researchers write. Although the size of the effect decreases as market size increases, in smaller markets the reduction in the number of seats available is substantial, a drop of 4.21 perc...