Entry and Exit in a Liberalised Market
AbstractWe analyse the entry and exit activity in the UK airline markets in the post-liberalisation period and study the differential traits between traditional and low cost carriers. Alongside with the characteristics traditionally highlighted as determinants of entry (e.g., airport presence and network economies), we find that the existence of charter or seasonal operators, product differentiation opportunities and the level of quality provided by the incumbents are also relevant in explaining entry and/or exit. Despite the liberalisation policies, the contestability of important large markets still seems to be limited.
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Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 97 (2007)
Issue (Month): 1 (January-February)
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Other versions of this item:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
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