An examination of historical changes in technical efficiency in the U.S. air transportation industry and trends in relative factor prices reveals a relationship that is consistent with the economic theory of production. The study attempts to show the extent to which this relationship reflects causality. Average factor productivities for selected aircraft introduced between 1948 and 1972 were calculated on an ad hoc basis to document the particular events that established the overall trends in technical efficiency. Those aircraft and innovations that had characteristics consistent with prevailing factor price incentives were identified and the circumstances surrounding their introduction analyzed to determine whether factor proportions had been set in accordance with these incentives. It is found that exogenous technological developments and considerations related to the improvement of quality of output had just as great an influence in establishing trends in technical efficiency as considerations related to the maximization of economic efficiency. The influence of the military, oligopolistic interdependence in the aircraft manufacturing industry, and the effects of speed on quality of output created problems of identification. Possible effects on past events of a higher relative price for energy were examined. It is shown that this modification of factor price conditions would quite likely have had a significant impact on the historical pattern of technological development. / Graduate and Postdoctoral Studies / Graduate

The specific purpose of this investigation is to compile selected case problems for use in teaching human relations by the case method. This investigation will include those case situations that involve many of the factors that cause differences of opinion and friction between individuals or groups. The cases selected are limited to those that actually became the subject of a grievance in the aircraft industry of the Dallas-Fort Worth area of North Texas.