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Two-sided platforms in airport privatization

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  • Bettini, Humberto F.A.J.
  • Oliveira, Alessandro V.M.

Abstract

This paper develops an empirical model to examine the relationship between ownership change and two-sided-platform formation in the air transport industry. We investigate whether privatization enhances the dynamic capabilities of airports so that they more closely resemble a two-sided platform. We study the case of the recent privatization of Brazilian airports. We find evidence of a permanent, ceteris paribus increase in demand triggered after the privatization program. The results are consistent with a preemption of assets with a view to expanding operations and so benefiting from the network effects offered by a two-sided platform.

Suggested Citation

  • Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Two-sided platforms in airport privatization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 262-278.
    • Handle: RePEc:eee:transe:v:93:y:2016:i:c:p:262-278
    DOI: 10.1016/j.tre.2016.06.003
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    Cited by:

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    5. D’Amico, Giuseppe, 2022. "Platform competition and consumer foresight: The case of airports," Economics of Transportation, Elsevier, vol. 29(C).

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    More about this item

    Keywords

    Two-sided platforms; Airports; Privatization; Demand; Econometrics;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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