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The Evolution of U.S. Airline Competition

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  • Severin Borenstein

Abstract

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.

Suggested Citation

  • Severin Borenstein, 1992. "The Evolution of U.S. Airline Competition," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 45-73, Spring.
  • Handle: RePEc:aea:jecper:v:6:y:1992:i:2:p:45-73
    Note: DOI: 10.1257/jep.6.2.45
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.6.2.45
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    References listed on IDEAS

    as
    1. Hurdle, Gloria J, et al, 1989. "Concentration, Potential Entry, and Performance in the Airline Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 119-139, December.
    2. Reiss, Peter C & Spiller, Pablo T, 1989. "Competition and Entry in Small Airline Markets," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 179-202, October.
    3. Gale, Ian L & Holmes, Thomas J, 1993. "Advance-Purchase Discounts and Monopoly Allocation of Capacity," American Economic Review, American Economic Association, vol. 83(1), pages 135-146, March.
    4. Dennis W. Carlton & William M. Landes & Richard A. Posner, 1980. "Benefits and Costs of Airline Mergers: A Case Study," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 65-83, Spring.
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    6. Douglas W. Caves & Laurits R. Christensen & Michael W. Tretheway, 1984. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 471-489, Winter.
    7. Severin Borenstein, 1991. "The Dominant-Firm Advantage in Multiproduct Industries: Evidence from the U. S. Airlines," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1237-1266.
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    More about this item

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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