Difference between revisions of "Airline antitrust restrictions"

From Policy Atlas
Jump to: navigation, search
(PolicyGraphics)
(PolicyGraphics)
Line 58: Line 58:
 
<!--This Template is designed for multiple policy areas. As such, one should delete or omit any PolicyGraphics that do not apply to a given policy area. For example, a transportation policy would typically not be tagged with the "For School Type" or "For Education Level" PolicyGraphics-->
 
<!--This Template is designed for multiple policy areas. As such, one should delete or omit any PolicyGraphics that do not apply to a given policy area. For example, a transportation policy would typically not be tagged with the "For School Type" or "For Education Level" PolicyGraphics-->
  
*Has adoption of: [[Has adoption of::Click "edit" to insert]]. <ref> INSERT a reference. </ref>
+
*Has adoption of: [[Has adoption of::Common]]. <ref> INSERT a reference. </ref>
 
<!--Insert one of the following as the level of policy adoption: Proposal, Limited, Common, or Defunct-->
 
<!--Insert one of the following as the level of policy adoption: Proposal, Limited, Common, or Defunct-->
 
<!--Wherever possible, add a reference to a source that backs up claim.-->
 
<!--Wherever possible, add a reference to a source that backs up claim.-->

Revision as of 13:22, 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.

Remember, whenever in doubt, see [Colocation] for a sample policy page.

CONCEPT


Goals
Example

Click "edit" to insert a hypothetical example of how the policy would be applied in practice.

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

The following questions should be considered when determining how to implement this policy:

  • If someone is thought to be breaking antitrust law:
  1. Does the DOJ think they broke it?

(Then the DOJ investigates)

  1. Does the DOJ have strong evidence that they broke it?

(Then the DOJ brings the defendant to court)

  • If a major merger is occurring:

(The DOJ reviews all major mergers in airline industry)

  1. Does the DOJ think the merger substantially lessens competition?

(The DOJ investigates)

  1. Does the DOJ have strong evidence indicating the merger does substantially lessen competition?

(Then the DOJ brings the defendants to court to challenge the merger. It is then up to court’s decision. The merger may fall through (because defendants don’t want a lawsuit)


ADOPTION


PolicyGraphics
Adopters
  • Notable entities who have implemented or adopted this policy include:


STAKEHOLDERS


Supporters
Opponents


REFERENCES


Research
  • [Click "edit" to insert links].
Resources
  • [Click "edit" to insert].
Footnotes
  1. INSERT a reference.
  2. INSERT a reference
  3. INSERT a reference.
  4. INSERT a reference.
Related Policies



PolicyAtlas is maintained by volunteer contributors. For instructions on how to join PolicyAtlas, simply create an account and read about how to contribute a policy.

You can also follow @PolicyAtlas and contact us on: Twitter Icon.png Twitter, Facebook Icon.png Facebook, Instagram Icon.png Instagram and Email.