Difference between revisions of "Airline antitrust restrictions"

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(Tradeoffs)
(Compatibility Assessment)
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=====Compatibility Assessment=====  
 
=====Compatibility Assessment=====  
 
If answered yes, the following questions indicate superior conditions under which the policy is more likely to be appropriate:
 
If answered yes, the following questions indicate superior conditions under which the policy is more likely to be appropriate:
# Click "edit" to add questions that help inform when the policy is most appropriate.
+
# When airlines are colluding prices
 +
# When two airlines that make up a large portion of the market are merging
 
<!--Describe key factors that demonstrate when the policy is most appropriate. For example, "Are current school textbooks outdated or in short supply?" would be a question to assess whether or not a new policy to use online or digital textbooks might be most effective. List at least 5 questions.-->
 
<!--Describe key factors that demonstrate when the policy is most appropriate. For example, "Are current school textbooks outdated or in short supply?" would be a question to assess whether or not a new policy to use online or digital textbooks might be most effective. List at least 5 questions.-->
  

Revision as of 12:57, 11 November 2015

Airline antitrust regulations exist because to protect consumers from higher prices by ensuring the continuation of market competition. The Federal Government enforces antitrust laws including The Sherman Antitrust Act, The Clayton Act, and The Federal Trade Commission Act. Airlines have a history of trouble running into antitrust laws because the industry’s high concentration (small number of firms) makes it is easier to collude prices. Since it is such a big industry, (it has a large number of customers) there is support behind the regulation.

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CONCEPT


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Example

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Tradeoffs

Tradeoffs of implementing this policy may include:

  1. Pros: Regulations protect competition, which is good for the above listed reasons.
  2. Cons: Overregulation burdens companies by causing an increase of costs for their operations (hiring lawyers, etc.), which are then passed to the customers, increase in the cost of their product, in this case air travel.
Compatibility Assessment

If answered yes, the following questions indicate superior conditions under which the policy is more likely to be appropriate:

  1. When airlines are colluding prices
  2. When two airlines that make up a large portion of the market are merging
Design

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ADOPTION


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STAKEHOLDERS


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REFERENCES


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