Measuring competition in civil aviation

Mark Lijesen (), Peter Nijkamp and Piet Rietveld

Journal of Air Transport Management, 2002, vol. 8, issue 3, 189-197

Abstract: Markets in civil aviation are characterized by large differences in the level of competition, both between time periods as between regions. To measure competition, several indicators are available, such as the number of competitors, the C4-index and the Herfindahl index. We use these measures in simulations of events that influence the level of competition, such as growing market shares, entry and merger. We find that there are events where different measures lead to different outcomes, not only in magnitude but also in sign. Competition indicators should be used with caution and attention should be devoted to the definition of the market and the importance of imperfect substitutes. The simultaneous use of several indicators, along with economic intuition and common sense reduces the risks involved.

Keywords: Civil aviation; Market power; Concentration measures (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969699701000485
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:8:y:2002:i:3:p:189-197

DOI: 10.1016/S0969-6997(01)00048-5

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().