Deregulation of Network Industries: What's Next? - download pdf or read online

By Sam Peltzman, Clifford Winston

ISBN-10: 0815770030

ISBN-13: 9780815770039

This quantity assesses the nation of deregulation within the significant U.S. community industries: airways, railroads, telecommunications, and electrical energy. each one bankruptcy identifies the primary coverage matters that experience arisen in every one because it undergoes its transformation to a deregulated setting. The authors demonstrate the failings of last laws and make the case for speedier and extra complete deregulation.

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79 Slots, which were intended to address this problem, have reduced competition and raised fares at two major airports, LaGuardia and O’Hare. Air traffic control has been criticized for delays in introducing Global Positioning System (GPS) technology that could expand runway and airspace capacity by enabling carriers to choose speedier flight paths and to take off and land more quickly. 78. There is also no reason why the airline industry should continue to be scrutinized by the Justice and Transportation departments.

72 We also find that fares increase as the percentage of gates not available for use by other carriers increases and that slot controls at New York LaGuardia and Chicago O’Hare airports raise fares. 73 The effect of slot controls at Washington National is statistically insignificant, possibly because of competition provided by nearby Washington Dulles and Baltimore-Washington airports. The quantitative implications of these findings indicate that airport access is an important area of concern for policymakers, but that hub dominance is even less of an issue than suggested by the previous model.

C. Dulles–San Francisco route, but it supplies adjacent competition on the BaltimoreWashington (BWI airport)–Oakland route. Next we turn to measures of (possible) imperfections in the air transportation market affecting fares that could be addressed by public policy. 61 Although economists do not agree on how one should measure predatory behavior, the Transportation Department has advanced a policy based on its view that predatory behavior has occurred in the airline industry. 62 Airline mergers also may have affected fares.

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Deregulation of Network Industries: What's Next? by Sam Peltzman, Clifford Winston


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