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Perception of airline industry structure by regulators and managers

  • Schnell, Mirko C.A.
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    Differences in the perception of environmental conditions by regulators and managers may explain differences in their opinions and ultimately regulatory failure. The paper investigates whether regulators and firm managers in the European airline industry differ in their perception of current and future industry conditions in general, and route entry barriers in particular. It uses data gathered by a questionnaire-based survey, which reveals that regulators and airline managers perceive only some industry conditions significantly differently. Concerning entry barriers, the data uncover very little significant disagreement. In general, the differences detected do not suggest that one group has a more optimistic picture of the airline industry than the other group has. Correlation among variables only partly corresponds to predictions by theory.

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    Article provided by Elsevier in its journal Transport Policy.

    Volume (Year): 12 (2005)
    Issue (Month): 3 (May)
    Pages: 221-234

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    Handle: RePEc:eee:trapol:v:12:y:2005:i:3:p:221-234
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    1. Louis A. Lefebvre & Robert Mason & √Člisabeth Lefebvre, 1997. "The Influence Prism in SMEs: The Power of CEOs' Perceptions on Technology Policy and Its Organizational Impacts," Management Science, INFORMS, vol. 43(6), pages 856-878, June.
    2. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    3. Paul Milgrom & John Roberts, 1980. "Predation, Reputation, and Entry Deterrence," Discussion Papers 427, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Bittlingmayer, George, 1990. "Efficiency and entry in a simple airline network," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 245-257, June.
    5. Gilbert, Richard J., 1989. "Mobility barriers and the value of incumbency," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 8, pages 475-535 Elsevier.
    6. Chang, Yu-Chun & Williams, George, 2002. "European major airlines' strategic reactions to the Third Package," Transport Policy, Elsevier, vol. 9(2), pages 129-142, April.
    7. √Člisabeth Lefebvre & Louis A. Lefebvre & R. Mason, 1994. "The Influence Prism in SMEs: The Power of CEOs' Perceptions on Technology Policy and Its Organizational Impacts," CIRANO Working Papers 94s-04, CIRANO.
    8. Christos Pitelis & Mirko Schnell, 2002. "Barriers to Mobility in Europe's Civil Aviation Markets: Theory and New Evidence," Review of Industrial Organization, Springer, vol. 20(2), pages 127-150, March.
    9. B. Curtis Eaton & Richard G. Lipsey, 1980. "Exit Barriers are Entry Barriers: The Durability of Capital as a Barrier to Entry," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 721-729, Autumn.
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