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Entry and Exit in a Liberalised Market

Author

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  • Maria J. Gil-Molto

    () (Loughborough University Economics Department)

  • Claudio A. Piga

    () (Loughborough University Economics Department)

Abstract

We analyze the determinants of entry and exit in the European Airline Markets in the post-liberalization period. Unlike previous studies, we find that the presence of charter or seasonal operators and the level of quality provided by the incumbents are relevant to explain entry and exit. Differential traits in the main low cost airlines' entry and exit behavior are also analysed.

Suggested Citation

  • Maria J. Gil-Molto & Claudio A. Piga, 2005. "Entry and Exit in a Liberalised Market," Discussion Paper Series 2005_10, Department of Economics, Loughborough University, revised May 2006.
  • Handle: RePEc:lbo:lbowps:2005_10
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    References listed on IDEAS

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    Cited by:

    1. Claudio A. Piga & Enrico Bachis, 2006. "Do Prices grow more in Euroland? Evidence from the Airline Industry," Discussion Paper Series 2006_8, Department of Economics, Loughborough University, revised Nov 2006.

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    More about this item

    Keywords

    Entry; Exit; Airlines; Conditional Logit;
    All these keywords.

    JEL classification:

    • 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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