Measuring Conduct And Cost Parameters In The Spanish Airline Market
AbstractThis paper develops a model of airline competition. The model is based on a demand and pricing equation system, which is estimated for the Spanish airline market. The empirical implementation of the equation system relies on a simultaneous rather than a consecutive procedure. I test the explanatory power of alternative oligopoly models with capacity constraints. In addition, I analyze the degree of density economies. Results show that Spanish airlines conduct is less competitive than the Cournot solution. I also find evidence that thin routes can be considered as natural monopolies.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0511011.
Length: 24 pages
Date of creation: 16 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 24
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Oligopoly; Air Transportation; Multiple Equation Models;
Other versions of this item:
- Xavier Fageda, 2006. "Measuring Conduct and Cost Parameters in the Spanish Airline Market," Review of Industrial Organization, Springer, vol. 28(4), pages 379-399, June.
- L - Industrial Organization
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-19 (All new papers)
- NEP-COM-2005-11-19 (Industrial Competition)
- NEP-MIC-2005-11-19 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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