THE EFFECT OF PRICE AND ENTRY REGULATION ON AIRLINE OUTPUT, CAPACITY AND EFFICIENCY

This paper develops a model of capacity utilization in an industry where price and entry are regulated. The distinctive feature is that capacity affects waiting time of consumers, and, therefore, influences demand. The result is that capacity utilization, output, and costs are jointly determined as a function of the regulator's policies, the value of time of consumers, and other exogenous variables. The model is estimated with airline data, and estimates of the price elasticity demand, corrected for induced quality variation, and of the consumer's marginal valuation of capacity are obtained. These are then used to assess the efficiency of airline regulation.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/1852781866
• Corporate Authors:

  Edward Elgar Publishing Limited

  Gower House, Croft Road, Aldershot
  Hants GU11 3HR,   England 
• Authors:
  • DeVany, A S
• Publication Date: 1994

Language

• English

Media Info

• Features: Appendices; Figures; References; Tables;
• Pagination: p. 163-181
• Serial:
  • ECONOMICS OF TRANSPORT
  • Volume: 2
  • Publisher: Edward Elgar Publishing Limited

Subject/Index Terms

• TRT Terms: Airlines; Demand; Economic efficiency; Quality of service; Waiting time
• Identifier Terms: Airline Deregulation Act of 1978
• Uncontrolled Terms: Capacity; Efficiency
• Subject Areas: Aviation; Economics;

Filing Info

• Accession Number: 00740458
• Record Type: Publication
• ISBN: 1852781866
• Files: TRIS
• Created Date: Sep 23 1997 12:00AM