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An examination of the change in costs from U.S. airline deregulation

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.

Identiferoai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.23851
Date January 1996
CreatorsKrantz, Katherine
ContributorsHamilton, Barton (advisor)
PublisherMcGill University
Source SetsLibrary and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada
LanguageEnglish
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Formatapplication/pdf
CoverageMaster of Arts (Department of Economics.)
RightsAll items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated.
Relationalephsysno: 001499727, proquestno: MM12045, Theses scanned by UMI/ProQuest.

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