Abstract
I study how incumbents change the degree of price dispersion when competition is reduced and the threat of entry is withdrawn. I analyse these issues by exploring the exit of Avianca Brazil, the market’s 4th largest firm in the Brazilian airline sector, in 2019. I find that the main incumbents increase price dispersion and this is due to an increase in the price of more expensive tickets.
| Original language | English |
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| Publication status | Published - 8 Sept 2023 |
| Event | Jornadas de Economia Industrial 2023 - Bilbao, Spain Duration: 7 Sept 2023 → 8 Sept 2023 https://asesec.org/jornadas_economia_industrial/index.html |
Conference
| Conference | Jornadas de Economia Industrial 2023 |
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| Country/Territory | Spain |
| City | Bilbao |
| Period | 7/09/23 → 8/09/23 |
| Internet address |
Keywords
- competition
- threat of entry
- exit
- price dispersion
- air sector