Entry games for the airline industry

Bontemps, Christian and Menezes Bezerra Sampaio, Raquel (2020) Entry games for the airline industry. TSE Working Paper, n. 20-1108, Toulouse

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In this paper we review the literature on static entry games and show how they can be used to estimate the market structure of the airline industry. The econometrics challenges are presented, in particular the problem of multiple equilibria and some solutions used in the literature are exposed. We also show how these models, either in the complete information setting or in the incomplete information one, can be estimated from i.i.d. data on market presence and market Characteristics. We illustrate it by estimating a static entry game with heterogeneous firms by Simulated Maximum
Likelihood on European data for the year 2015.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2020
Place of Publication: Toulouse
Uncontrolled Keywords: entry, airlines, multiple equilibria, estimation, industrial organization
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 20 May 2020 09:34
Last Modified: 20 May 2020 09:34
["eprint_fieldname_oai_identifier" not defined]: oai:tse-fr.eu:124321
URI: http://publications.ut-capitole.fr/id/eprint/34997

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