Airline deregulation, fares, and market behavior: some empirical evidence

Abstract

Since airline deregulation began in 1978, there have been many changes in fares, services, and markets. Moreover, in the relatively brief time since deregulation occurred, economists have undertaken several extensive studies of the effects of airline deregulation. These studies have concerned themselves with fares, route structures, services offered between different types of cities and city pairs, entry of new firms, and other topics. Most of the economic studies of deregulation have arrived at very favorable conclusions – deregulation has, by most economists' measures, improved the functioning of airline markets.