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Air transport – A Case Study in International Regulation

Air transport – A Case Study in International Regulation

Free competition between airlines is impossible for political reasons. Dr Doganis suggests that non-scheduled traffic - freed from artificial conditions - should be included in bilateral agreements, with a limit to total capacity but no control of tariffs; and that IATA Tariff Conferences should be required to publish the economic justification for fares.

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Deregulating Taxi Services: A Word of Caution

This paper studies pricing and capacity decisions in markets for phone-ordered taxicabs. Firms first choose capacities and then compete in prices. As firm demand increases, so does waiting time. This dampens competition and makes prices too high from the social point of view. Efficiency improves if firms choose large capacities. In a two-firm setting, equilibrium capacities are shown to be larger if both firms maximise total profits than if they maximise profits per cab.

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