The Effect of Price and Entry Regulation on Airline Output, Capacity and Efficiency
AbstractThis paper develops a model of capacity utilization in an industry where price and entry are regulated. The distinctive feature is that capacity affects waiting time of consumers, and, therefore, influences demand. The result is that capacity utilization, output, and costs are jointly determined as a function of the regulator's policies, the value of time of consumers, and other exogenous variables. The model is estimated with airline data, and estimates of the price elasticity of demand, corrected for induced quality variation, and of the consumer's marginal valuation of capacity are obtained. These are then used to assess the efficiency of airline regulation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 6 (1975)
Issue (Month): 1 (Spring)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- David Card, 1996.
"Deregulation and Labor Earnings in the Airline Industry,"
NBER Working Papers
5687, National Bureau of Economic Research, Inc.
- David Card, 1989. "Deregulation and Labor Earnings in the Airline Industry," Working Papers 627, Princeton University, Department of Economics, Industrial Relations Section..
- repec:fth:prinin:247 is not listed on IDEAS
- repec:pri:indrel:627 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.