Merger simulation with quality improvement: application to the case of a codeshare between major carriers in Brazil

Simulação de fusão com variações de qualidade no produto das firmas: aplicação para o caso do code-share Varig-TAM

This work presents a model of simulated post-merger prices adjusted to the specifics of the airline industry. The model here proposed takes in consideration peculiar characteristics of this sector, in order to measure the effect in prices due to improvements of quality in the product after the merger. With this development, a strong hypothesis of the traditional post-merged prices simulation models was relaxed. Constant quality before and after mergers is the hypothesis relaxed, this hypothesis is typical of the models implemented in other sectors. Due to air transportation specifics, it was possible to develop a model able to measure the quality improvement effects in the post-merger prices.

Language

  • English
  • Portuguese

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01494622
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 20 2013 12:52AM