THE IMPACTS OF LIBERALISATION ON A BRAZILIAN AIR SHUTTLE MARKET

Alessandro V.M Oliveira
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Alessandro V.M Oliveira: Department of Economics, University of Warwick

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This paper aims at assessing the impacts of recent economic liberalisation on an important subset of the Brazilian airline industry: the air shuttle market on the route Rio de Janeiro – São Paulo, a pioneer service created in 1959. In order to estimate structural relationships of the competition model, a product differentiated setting with conduct parameter was designed. Results permitted inferring about a rupture in the degree of firms' heterogeneity and in the extent of the deviation from Nash behaviour due to regulatory reform, as well as estimation of pertinent route-level cost information.

Keywords: air shuttle; airline industry; competition; deregulation; product differentiation (search for similar items in EconPapers)
JEL-codes: L93 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:676

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