The Evolution of U.S. Airline Competition

@article{Borenstein1992TheEO,
  title={The Evolution of U.S. Airline Competition},
  author={Severin Borenstein},
  journal={Journal of Economic Perspectives},
  year={1992},
  volume={6},
  pages={45-73}
}
  • S. Borenstein
  • Published 1 May 1992
  • Business
  • Journal of Economic Perspectives
The next section reviews the evolution of the domestic airline industry since the late 1970s, when it was abruptly freed from most regulatory constraints on pricing, entry, and exit. (International air travel is considered here only as it relates to competition in the domestic industry.) The following sections will examine structure issues and strategic developments in airline competition and discuss public policy options in dealing with the airline industry. 

COMPETITION IN THE EUROPEAN AIRLINE INDUSTRY, 1976-1994.

Until recently, the European airline industry has been sheltered from competition. Bilateral treaties were used to set fares and flight frequencies and flag carriers were heavily subsidized. With the

The evolution of network competition in transatlantic aviation and the effects of regulatory liberalization

Since the domestic deregulation of the U.S. airline industry in 1978, impacts to domestic stakeholders, including airlines, airports, labor and consumers, have been well-studied. International air

Where are the airlines headed? Implications of airline industry structure and change for consumers

This paper explores the consumer impacts of recent airline industry change, in the context of its oligopoly market structure and current industry environment.

Low Cost Carriers and the Evolution of the Domestic U.S. Airline Industry

The article studies the evolution of the domestic U.S. airline industry from 1995 to 2009 using T-100 traffic data and DB1B fare data from the U.S. Department of Transportation. Unlike previous

An Assessment of Some Recent Criticisms of the U.S. Airline Industry

This article reviews a recent paper by Brock (2000) analyzing developments in the airline industry. Using Department of Transportation data, we attempt to verify a number of assertions made by Brock

Low Cost Carriers and the Evolution of the U.S. Airline Industry

The article studies the evolution of the U.S airline industry from 1995 to 2009 using T-100 traffic data and DB1B fare data from the U.S. Department of Transportation. Based on a differentiation in

Pricing and Performance in Monopoly Airline Markets

SINCE the Airline Deregulation Act of 1978 (ADA), much has been learned about the performance characteristics of airline markets functioning free of governmental control. Contrary to the initial

Evidence on market structure of the deregulated US airline industry

Airline deregulation in the USA was a rejection of inefficient regulation and inspired by the perspective of both potential and actual competition in the industry. Using multivariate regression and
...

References

SHOWING 1-10 OF 40 REFERENCES

The Economic Effects of Airline Deregulation

In 1938 the U.S. Government took under its wing an infant airline industry. Government agencies assumed responsibility not only for airline safety but for setting fares and determining how individual

Competition and Price Dispersion in the U.S. Airline Industry

We study dispersion in the prices an airline charges to different passengers on the same route. This variation in fares is substantial: the expected absolute difference in fares between two

Benefits and Costs of Airline Mergers: A Case Study

This paper provides a methodology to analyze the potential benefits and costs of airline mergers. The methodology is applied to the recent merger between North Central Airlines and Southern Airways

THE CONTESTABILITY OF AIRLINE MARKETS DURING THE TRANSITION TO DEREGULATION. IN: AIR TRANSPORT

This paper investigates whether the theory holds true for city-pair airline markets that contestable markets, even if actually served by only one firm, exhibit many desirable properties of

AIRLINE COMPETITION IN DEREGULATED MARKETS: THEORY, FIRM STRATEGY, AND PUBLIC POLICY

How airlines compete and the desirability of government intervention to control airline competition must be among the most studied of regulatory questions. This paper proposes to analyze the behavior

A LONG-RUN COST FUNCTION FOR THE LOCAL SERVICE AIRLINE INDUSTRY

N this study we formulate and estimate a cost function for the United States local service airline industry. Section I discusses certain characteristics of the industry and its regulation by the

Localized market power in the U.S. airline industry

This paper tests whether the observed dominance of most city-pair markets and airports in the U.S. domestic airline industry by single carriers confers any pricing power on the dominan t firms. The

The effects of mergers on price and output: Two case studies from the airline industry

The literature on industrial organization contains very little direct evidence on the effects of actual mergers. This study estimates the effects of two recent airline mergers approved by the

Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry

This article estimates the importance of route and airport dominance in determining the degree of market power exercised by an airline. The results indicate that an airline's share of passengers on a