Why might an executive of an airline prefer to operate in a regulated enviro..?

Economics
Tutor: None Selected Time limit: 1 Day

Airline Reregulation

Some airline executives have called for re-regulation. Why might an executive of an airline prefer to operate in a regulated environment?

Aug 29th, 2015

Thank you for the opportunity to help you with your question!

An executive airline would prefer to operate under a regulated environment so that they can have an organized collusion. It appears an inverse application of the winners’ line on assuming that people may choose to fly at the lowest price if an airline undercuts all others by a dollar and the other airline does the same thing. In this condition, the only way an airline can draw customers is by loosing money. A regulated environment creates more barriers to entry and that’s makes it harder for competition to stay in. an airline may also require regulation to avoid wasteful expenses as a group.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 29th, 2015

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Aug 29th, 2015
...
Aug 29th, 2015
Dec 8th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer