| Sumario: | According to the board of the National Agency of Civil Aviation, Brazil was the country that experienced the largest growth in the number of passengers carried worldwide in 2010, rising to the rank of the seventh market in civil aviation. Due to the growth of the industry and also the demand for air tickets, this scenario seems favorable for the consolidation and spread of the Brazilian airlines with lower market share. This work shows that economists can make inferences about entry, even when prices and firm's costs are unobservable. Through the model proposed by Bresnahan and Reiss (1990,1991), based on game theory, this work seeks to analyze the entry effect of smaller airlines companies in 26 Brazilian capitals. The main results shows an increase in competition with entry, reducing the entry thresholds ratio between firms from the the third to the second firm, and it also suggests that investments in airport infrastructure and efficiency are good measures of public policy for the sector.
|
|---|
