1. Introduction Power industry deregulation and electricity market restructuring, which began in Chile in the 1980s and then spread to Norway, New Zealand and the UK, were introduced in the United States with the passage of the Energy Policy Act (EPA) of 1992 (Jameson, 1997). The EPA and subsequent Federal Energy Regulatory Commission (FERC) Orders led to the restructuring of vertically integrated electric utilities, the establishment of Independent System Operators (ISO) and Regional Transmission Organizations (RTO) and the development of competitive wholesale power markets. Deregulation also led to the creation of various electricity contract–based financial derivative products. In 1996, the New York Mercantile Exchange (NYMEX) created the US’s first electricity futures, the Palo Verde and California/Oregon Border contracts, which were traded for physical delivery (Warwick, 2002). While these products were eventually delisted in 2002, other exchange-traded and OTC contracts, for both physical and financial settlement, have been introduced on numerous exchanges, including the Intercontinental Exchange (ICE), Chicago Mercantile Exchange (CME) and markets operated by ISOs and RTOs. From the start, deregulation of the electricity industry has been a contentious and controversial subject, its economic, political and social ramifications hotly debated in the US and abroad. The debate continues, and as of September 2010, fifteen states and the District of Columbia have deregulated electricity markets, seven have suspended restructuring activities and twenty-eight have no deregulatory legislation or restructuring activities to speak of (FERC, 2010).

This thesis presents two models to determine technological change and cost inefficiency in the regulated U.S. Motor Carrier Industry following regulatory reform. Data from the LTL sector of the industry from 1976 to 1987 are used in this study. Results provide insights about the observed increase in industry concentration and the effects of regulatory reform. In chapter II, a translog cost function model is used to examine the impact of deregulation and technological bias. We show that technological change has been labor saving and purchased capital using, and that these input biases were induced by changes in output level. The increase of capital cost share and the decrease of fuel cost share are attributed to deregulation. Overtime, the LTL sector of the motor carrier industry has become more capital intensive resulting in even higher entry barriers. Deregulation has had a negative impact on technological change and led to higher industry costs. In chapter III, a stochastic cost frontier model is used to examine cost inefficiency. Results suggest that cost inefficiency accounts for 12.61% of the industry's total cost and the average level of inefficiency has not significantly changed over time. The mean estimates of firm-specific inefficiencies range between 5.5% and 29.6% for the period 1976-1987. Based on the estimated firm-specific inefficiencies, Tobit regression models are constructed to examine variations of inefficiency among firms in different ICC regions and to identify factors contributing to overall inefficiency. The main factors contributing to inefficiency are output, percent of LTL shipments, and input ratios; in particular, large firms appears to operate more efficiently than small firms. We also show that, although large firms have a slower rate of technological advancement than small firms, economies of scale exist and are increasing over time. Therefore, the rise in industry concentration could be justified from the standpoint of scale economies and efficiency gain. Finally, deregulation has had no impact on the overall level of inefficiency. / Graduation date: 1999

This creative project documents the effects of deregulation on the trucking industry. Through the use of DVD, the viewer learns all about the culture of trucking and the way it has changed in the past 30 years since deregulation. In August of 2006, I logged over 4,000 miles speaking with four different drivers. The result is a DVD consisting of a documentary, video short stories, photo journals, audio recordings and a flash card game, teaching the viewer about the trucking culture. / Department of Telecommunications

Paul L. Joskow and Richard Schmalensee. / Includes index. / Bibliography: p. [247]-261.

The airline industry has been the subject of numerous studies both before and after deregulation. None of these, however have explicitly modelled the cost savings due to deregulation. This thesis develops a number of testable hypotheses about technological and managerial choice as they pertain to regulatory reform. The results of the tests show that the production technology the airlines developed post-deregulation is not unambiguously more efficient than the pre-deregulatoin technology. The unregulated output and network structure, however, appear to be more efficient than those utilized during regulation. A model is developed to decompose the change in cost due to deregulation. It is found that approximately 5% of the reduction in cost is the result of the new technology while 95% of the savings stems from the new output and network structures.

This dissertation deals with the changes which have intervened since the inception of deregulation in the US and Canadian airline industry, in the 'effort bargain'. / It deals first with the role of economic, institutional and legislative conditions, in each country, on labour, through a comparison of aggregate labour outcomes from 1960 to 1990. It subsequently assesses the impact of carriers' strategies to lower costs through an analysis of the collective agreements of pilots, flight attendants, mechanics and agents. This part of the research covers two airlines in each country. / Collected data indicate that deregulation decreased average earnings in both countries but the decline was greater in the US than in Canada. The US's greater decline was found to be linked to the economic context and competitive unionism, which had previously helped unions increase earnings above competitive levels. In the period of deregulation, this system caved in to pressures from the carriers and labour market conditions. / In Canada, the combined outcome of government monetary controls and labour negotiations, patterned after the conditions negotiated by the state-owned airline, kept earnings at more competitive levels. During deregulation, the decline was modest and approximately the same or slightly larger than in other industries. / The comparative analysis across carriers and crafts shows that competitive markets led to an elaborate pattern of contract changes which undermined the previous bargaining pattern as well as the system of labour relations. All airlines sought to cut costs through moderation of wage increases, two-tier wage structure, and work rule and fringe benefit changes. These concessions varied across carriers, work groups, labour market conditions, and the specificity of these jobs. Mechanics, with alternative fields of employment and with a centralized union structure, made the least concessions. / Although there were wage variations in the two countries, due to different pay scales, wages for senior workers have remained almost unchanged since deregulation. The small increases were exchanged for substantially lower wages for new employees and employment-productivity gains. In 1990, top wages were 10% to 20% higher, but those at the entry level were significantly lower in the US than in Canada. / These findings suggest that while competitive markets exert an important influence on labour relations, their influence is best understood historically and in the context of each country's specific circumstances.

[Truncated abstract] “Open Skies” is the term given to a relatively recent (1992) policy initiative of the United States in its pursuit of the deregulation of international air transportation. It represents the latest in a long line of similar initiatives which the U.S. has been pursuing almost since the inception of the aviation industry. Essentially “Open Skies” is little more than a specific type of bilateral aviation agreement between two nations (and often between more than two nations) which typically provides for open entry on routes, unrestricted capacity and frequency on routes, and unrestricted air traffic rights. The significance of Open Skies agreements is that they appear to encapsulate general world-wide trends towards open economies characterised by a minimum of government interference and a maximum reliance on market forces to allocate scarce resources ... Australia however is not one of the nations seeking to become a party to such an agreement with the U.S. despite attempts by that nation to persuade Australia to do so and the question is: Can or should Australia resist attempts by the United States to bring it within the expanding umbrella of Open Skies, or are there other practical alternatives open to Australia? After examining the history of the development of Open Skies agreements and their international legal foundation, this thesis argues that there are strong considerations of policy and economics why Australia should embrace Open Skies initially at least on a regional basis centred in the Asia Pacific region, rather than with the United States. Implicit in that proposal is the fact that in terms of its constitutional and legal system, Australia has the legal capacity to enter into Open Skies agreements. The parties to such a regional Open Skies agreement might at a later date choose to enter into a multilateral Open Skies agreement with the United States, if economic and political conditions are suitable for them to do so. On the assumption that a form of Open Skies policy will eventually be adopted by Australia this thesis examines the constitutional and domestic legal regulatory framework for aviation within Australia, and the changes if any which would be required to it, if Australia was to embrace such a policy.

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This research examines competing theories based on the strategic choice and organizational ecology perspectives by investigating strategic change in the banking industry preceding and following interest rate and product deregulation of financial institutions in the early 1980's. Adaptation theory suggests that the largest, oldest, and most powerful organizations have superior capacities for adapting to environmental circumstances and that organizational variability reflects changes in the strategy and structure of a firm in response to environmental changes. The organizational ecology perspective hypothesizes that a firm's ability to change is inversely related to organizational age and size and that organizations become inert as they grow and age. The propositions and hypotheses in this research examine the relationship between organizational age and size on both absolute and relative inertia. The association between strategic change on firm survival is also explored. Findings demonstrate partial support for both theories. An explanation for the mixed findings is offered which suggests that both adaptation and organizational ecology theories explain continuous change, while the deregulation period under study represented a period of discontinuous change. A third model of strategic change, proposed by Meyers, Brooks, and Goes (1990) is offered as a better explanation of strategic change among U.S. banks during the decade following deregulation. / Ph. D.