Airline Regulation and Market Performance

摘要: In order to determine the effects of domestic airline regulation on fares and market efficiency American air transport industry, it is necessary know what would be if travel markets were unregulated. To answer this question, a long-run cost model developed estimated, used predict hypothetical unregulated (or cost-based) for 30 major markets. As test, relatively California intrastate routes, which does quite accurately, though number such routes observed small. The results study indicate that as 1968, regulated had markups over estimated fare ranging from 20 95 percent, with distinct tendency rise distance. Crudely updated 1972, current 48 84 less correlation between markup