By Sam Peltzman, Clifford Winston

ISBN-10: 0815770030

ISBN-13: 9780815770039

This quantity assesses the country of deregulation within the significant U.S. community industries: airways, railroads, telecommunications, and electrical energy. every one bankruptcy identifies the vital coverage matters that experience arisen in every one because it undergoes its transformation to a deregulated atmosphere. The authors show the failings of closing rules and make the case for quicker and extra accomplished deregulation.

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Shippers benefited too. 9 A major factor in deregulation’s success has been the widespread use of contract rates. 6. Association of American Railroads (1999, p. 24). 7. General Accounting Office (1999a, pp. 40–41). 8. Winston and others (1990). 9. The figures in the table should be qualified because they are not counterfactual estimates that control for other influences on rail rates over time, such as increasing use by shippers of their own railcars.    Table 2-1. 9 Source: General Accounting Office, (1999a, p.

The Federal Aviation Administration aggregates airport level data into metropolitan area data; thus its definition of a hub class differs from the one used here. Finally, because the route density dummy variables cover all possible route combinations in the data, a separate constant term was not included. 59. S. Department of Transportation’s 1995 American Travel Survey. 60 We also include the potential and adjacent competition supplied by Southwest and other low-fare carriers. Potential competition is defined as the number of airports on a given route served by a carrier that does not serve the route; adjacent competition is assumed to exist when a carrier serves origin and destination airports that are within fifty miles of the origin and destination airports that make up a given route.

Morrison and Winston (1997). 51. The Wright Amendment, a provision contained in Section 29 of the International Air Transportation Competition Act of 1979, also reduces competition and raises fares by allowing airlines that use Love Field in Dallas to offer flights only to other cities in Texas and to Alabama, Arkansas, Kansas, Louisiana, Mississippi, New Mexico, and Oklahoma. 52. Many of the contracts between airport authorities and airlines contain “majority in interest” clauses, which give the airlines signing the contract the right to approve certain capital expenditures, including spending on terminals and gates.

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