{"title":"Switching Costs in the Brazilian Airline Sector","authors":"Marcelo Resende, D. Amorim, P. O. Valente","doi":"10.1080/13571516.2020.1787746","DOIUrl":null,"url":null,"abstract":"Abstract This paper calculates the switching costs in the context of the Brazilian airline industry by considering an indirect approach, and econometrically evaluates its determinants during the 2005-2017 period. Evidence suggests non-negligible switching costs that display a decreasing trend over time, which is consistent with an increase in the competition in the sector, as also exhibited in other countries. An instrumental variables estimation suggests that variables referring to the number of flights, a frequent flyer program and the entry/presence of competitors play a role in determining the magnitude of switching costs.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"69 1","pages":"321 - 339"},"PeriodicalIF":1.9000,"publicationDate":"2020-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of the Economics of Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/13571516.2020.1787746","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 2
Abstract
Abstract This paper calculates the switching costs in the context of the Brazilian airline industry by considering an indirect approach, and econometrically evaluates its determinants during the 2005-2017 period. Evidence suggests non-negligible switching costs that display a decreasing trend over time, which is consistent with an increase in the competition in the sector, as also exhibited in other countries. An instrumental variables estimation suggests that variables referring to the number of flights, a frequent flyer program and the entry/presence of competitors play a role in determining the magnitude of switching costs.
期刊介绍:
International Journal of the Economics of Business presents original, peer reviewed research in economics that is clearly applicable to business or related public policy problems or issues. The term "business" is used in its widest sense to encompass both public and private sector—governmental, private non-profit and cooperative organizations, as well as profit-seeking enterprises. International Journal of the Economics of Business carries papers relating to three main spheres: The organization—to analyse and aid decision making and the internal organization of the business; The industry—to analyse how businesses interact and evolve within and across industries.