The Welfare Effects of Airline Fare Deregulation in the United States

The Welfare Effects of Airline Fare Deregulation in the United States

Deregulation of airline fares between 1976 and 1978 (while entry was still restricted) is found to have increased consumer's surplus without reducing profits.

Share Content

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Articles

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.

View Journal »