Question
Please help me with this assignment! What to Do: The airline industry in the United States is truly fascinating and a ripe area for exploring
Please help me with this assignment!
What to Do: The airline industry in the United States is truly fascinating and a ripe area for exploring the impact of different market structures on consumers, producers, and the broader society. From the 1930s through the late 1970s, the airline industry in the United States was highly regulated; the government dictated what routes each carrier could fly, what prices they could charge, etc. Since the late 1970s and deregulation, however, the industry became much more competitive until the last few years when it has become less competitive (overall). The purpose of this personal journal entry is for you to reflect on the nature of competition vs. market power in the airline industry. To accomplish your task, please check out the following sources:
(1) https://en.wikipedia.org/wiki/Airline_deregulation
and
(2) "Planet Money" NPR podcast on super discount carrier Spirit Airlines, linked
https://www.npr.org/sections/money/2014/02/14/276973956/episode-517-the-fastest-growing-least-popular-airline-in-america
What to Write:Please respond to the questions below.
- List at least 4 ways the behaviors of airlines in the US have changed since the deregulation of the late 1970s
- Who has gained from the deregulation of the airline industry? Who has lost? Explain your answer using economic concepts including monopoly power, competition, producers' surplus, consumers' surplus, deadweight loss, etc.
- Have you flown, or would you be willing to fly, on a super-discount carrier like Spirit Airlines? Why or why not? Explain.
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