Airline Regulation « regulation2point0

Price Discrimination is not a Dirty Word

January 23rd, 2013

A CNN headline, January 23, 2013: “Southwest charges extra to board first.” We understand this may attract eyeballs (and thus advertising). But consider this alternative: “Southwest charges less to board five minutes later.”

The framing here matters for getting people’s attention – Southwest long made a fetish of its democratic, …

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Winging It on Prices

April 21st, 2010

Spirit Airlines’ announcement that it will charge extra for carry-on baggage yielded the predictable grumbles from fee-shocked travelers. What next? A charge for using the toilet? But as believers in marginal-cost pricing, we have a yen (dollar? euro?) to defend the practice. Indeed, we wish it …

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Did You See…?

February 16th, 2010

…Mark Perry’s blog on the unintended consequences of the Department of Transportation’s new penalties for airline delays? Under a rule in effect April 29, a carrier that allows a flight to sit on the tarmac for more than three hours will be subject to a fine of $27,500 per …

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For an assistant professor (American University’s School of International Service) three years out of graduate school (Princeton), Jeff Colgan is making quite a splash. As a scholar working at the nexus between economics and political science, he’s specialized in analyzing the links between petroleum and international conflict. His new book, Petro-Aggression, explores the question of why some oil-fueled regimes stir the geopolitical pot (think Iran, Venezuela) while others are quite conservative (Saudi Arabia). But we’re most taken with his working paper on OPEC, in which he argues that the cartel (as opposed to individual cartel members) is toothless.

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Price Discrimination is not a Dirty Word

Winging It on Prices

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