How Airline Markets Work... or Do They? Regulatory Reform in the Airline Industry¶
Borenstein, S., & Rose, N. L. (2014). How Airline Markets Work... or Do They? Regulatory Reform in the Airline Industry. Economic Regulation and Its Reform: What Have We Learned? (University of Chicago Press).
Cited by¶
1 citation across 1 artifact.
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Domain-specific¶
- Government Failure
- The paradigm case is the Civil Aeronautics Board, which for decades set U.S. airline fares and routes and blocked new entrants, shielding incumbent carriers from price competition and entry at travelers' expense until deregulation in 1978
This sourceDocuments that the CAB controlled U.S. airline fares and entry from 1938, blocked new trunk carriers and held fares above competitive costs until the 1978 Airline Deregulation Act, with the margins dissipated in service competition rather than profits.
SupportedVerified against the source
- The paradigm case is the Civil Aeronautics Board, which for decades set U.S. airline fares and routes and blocked new entrants, shielding incumbent carriers from price competition and entry at travelers' expense until deregulation in 1978
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