Airline Prices (1979-2011)

In: History Source: Washington Post US Economy

13 Mar 2013

The effects of deregulation of the airline industry in the late 70s – from an article by the always insightful Steven Pearlstein.

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Somewhat ironically, the original expansion of competition that deregulation was supposed to create has now entirely disappeared (the below could be updated to show the recent USAir/American merger).

3 Responses to Airline Prices (1979-2011)

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Shane

March 13th, 2013 at 2:50 pm

Argh!! You can demonstrate the effects of anything by starting the trend line at the year of the change. You have to show the years prior to be able to evaluate a potential effect. People make this same mistake all the time when evaluating the effect of deregulation and airline safety and it’s incredibly misleading.

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Shane

March 13th, 2013 at 2:53 pm

Shoot, the previous post should say “can’t demonstrate the effects…”

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Max Entropy

March 15th, 2013 at 2:36 am

The same thing happened to truck cargo prices after the ICC was eliminated and freight rates were deregulated though it’s less visible to the consumer.

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