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The impacts of liberalisation on a Brazilian air shuttle market

By Alessandro V. M. Oliveira

Abstract

This paper aims at assessing the impacts of recent economic liberalisation on an important subset of the Brazilian airline industry: the air shuttle market on the route Rio de Janeiro – São Paulo, a pioneer service created in 1959. In order to estimate structural relationships of the competition model, a product differentiated setting with conduct parameter was designed. Results permitted inferring about a rupture in the degree of firms' heterogeneity and in the extent of the deviation from Nash behaviour due to regulatory reform, as well as estimation of pertinent route-level cost information

Topics: HB, TL
Publisher: University of Warwick, Department of Economics
Year: 2003
OAI identifier: oai:wrap.warwick.ac.uk:1513

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