This is interesting. What is the source of the monopoly power over the
slots? How are the slots allocated?
Second, absent that monopoly power and given the effects of competition,
wouldn't we expect to see re-regulation of the industry to end the "anarchy"
of the market? Perhaps even a Department of Aviation to go with the
Department of Agriculture?
John Samples
Cato Institute
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of
William Dickens
Sent: Wednesday, January 17, 2001 8:36 AM
To: [EMAIL PROTECTED]
Subject: Re: Airline firms
Since deregulation, start-ups come and go. Big airlines seem to survive on
the basis of the monopoly power they derive from their terminal slots at
major airports. Otherwise airlines might be the classic case of a declining
cost industry with few barriers to entry making it impossible for anyone to
stay in business for long since competition will tend to drive prices down
to marginal cost < total cost ... -- Bill Dickens
