ECONOMIC CROSS SUBSIDIZATION IN DOMESTIC AIR TRANSPORTATION

This paper presents an analysis of the economic incentives for a particular air carrier to provide air service to a particluar point. Economic cross subsidization is discussed as it exists in many industries other than domestic air service. A suggested definition of economic cross subsidization is presented as well as an argument for recongnizing this economic concept as primarily one of allocation of revenues rather than as primarily an allocation of accounting costs, which has been the traditional approach. Issues of product definition are also discussed. /Author/

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 11-17
  • Monograph Title: Price and subsidy in intercity transportation and issues of benefits and costs
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00176468
  • Record Type: Publication
  • ISBN: 030902661X
  • Files: TRIS, TRB
  • Created Date: Jun 14 1978 12:00AM