Advanced Search
MyIDEAS: Login to save this article or follow this journal

Intermodal competition in the Brazilian interstate travel market

Contents:

Author Info

  • Frederico Araújo Turolla

    ()
    (Escola Superior de Propaganda e Marketing (ESPM) and Fundação Getúlio Vargas (FGV). R. Dr. Neto de Araujo 320 cj 1307, Vila Mariana, São Paulo, Brazil)

  • Moisés Diniz Vassallo

    ()
    (Center for Studies of Airline Regulation and Competition, Aeronauthical Institute of Technology (NECTAR/ITA). Av. Escola Politécnica 2.200, AP 73, Bloco Itália - Jaquaré, São Paulo, Brazil.)

  • Alessandro V. Marques de Oliveira

    ()
    (Center for Studies of Airline Regulation and Competition, Aeronauthical Institute of Technology (NECTAR/ITA). Rua Vera Lúcia Cardoso Silva Barros 84, Urbanova, São José dos Campos, Brazil.)

Abstract

This paper presents a test of intermodal interaction between coaches and airlines in Brazil in order to check for the efficacy of recent liberalization measures designed to promote competition in both industries. Interstate travel service in the country is heavily provided by coaches, and the system is fully operated by the private sector under public delegation through permits and authorizations. Agency-based regulation was introduced in 2002 along with a price cap regime aimed at enhancing the flexibility to change fares in response to demand and cost conditions. By making use of a reaction function-based model of coach operators’ pricing decisions in the interstate travel market, we then estimate the sensitivity of the changes in coach fares to the changes in airline fares in a simultaneous-equation framework. Intermodal interaction among coach operators and airlines is found to be highly significant and probably due to the competition for a small but increasing set of premium, quality-sensitive, coach passengers.

Download Info

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.rae-ear.org/index.php/rae/article/view/75
Download Restriction: no

Bibliographic Info

Article provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its journal Revista de Analisis Economico.

Volume (Year): 23 (2008)
Issue (Month): 1 (June)
Pages: 21-33

as in new window
Handle: RePEc:ila:anaeco:v:23:y:2008:i:1:p:21-33

Contact details of provider:
Postal: Erasmo Escala 1835, 6500620 Santiago
Phone: (562) 692-0265
Fax: (562) 692-0303
Email:
Web page: http://www.economia.uahurtado.cl/
More information through EDIRC

Order Information:
Email:

Related research

Keywords: Air Transportation; Coaches; Industrial Organization; Econometrics.;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Freitas, André Luís Policani, 2013. "Assessing the quality of intercity road transportation of passengers: An exploratory study in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 379-392.

Lists

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

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ila:anaeco:v:23:y:2008:i:1:p:21-33. 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: (Marcela Perticara).

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.