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First, we find evidence of significant market segmentation between the medium- and long-range wide-body planes, consistent with the anecdotal evidence on the near monopoly position enjoyed by the Boeing 747 in the long-range market until the early 1990s. Second, despite the small number of firms in the industry, market competition has intensified (we estimate higher demand elasticities and lower markups over time), especially with the entry of new aircraft varieties. Third, the markup estimates implied by the Bertrand and Cournot competition are relatively similar. This might be explained by the growing presence of multi-product firms in the industry...
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