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Measuring Conduct and Cost Parameters in the Spanish Air Transport Market

Xavier Fageda

No 125, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: This paper estimates a model of airline competition for the Spanish air transport market. I test the explanatory power of alternative oligopoly models with capacity constraints. In addition, I analyse the degree of density economies. Results show that Spanish airlines conduct follows a price-leadership scheme so that it is less competitive than the Cournot solution. I also find evidence that thin routes can be considered as natural monopolies.

JEL-codes: C30 D43 L13 L93 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2004
New Economics Papers: this item is included in nep-com, nep-eff and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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