Politics vs economics: unintended consequences of Governments’ interventions in airlines’ markets

Ancell, D. 2016. Politics vs economics: unintended consequences of Governments’ interventions in airlines’ markets. 20th Air Transport Research Society Conference. Rhodes, Greece 23 - 26 Jun 2016

TitlePolitics vs economics: unintended consequences of Governments’ interventions in airlines’ markets
AuthorsAncell, D.
TypeConference paper
Abstract

Overlaying theories of market inefficiencies and/or failure onto airline economics indicates that the industry encounters at least seven of the indicators which have triggered interventions by national, multi-national or supranational governments (NMSGs) trying to resolve political, social or environmental problems. The NMSGs’ interventions aimed to resolve lack of competition, fill missing markets, and neuter the presence of negative externalities, free riders, social inequalities and moral panic. Desk research showed that their interventions (many lacking preliminary economic analysis) either intentionally solved and/or unintentionally triggered market inefficiencies or failures. It is possible that some of the interventions could eventually make advanced world airlines subsidise their advancing world competitors.

Keywordsairlines, competition, market, failure, inefficiency
Year2016
Conference20th Air Transport Research Society Conference
Accepted author manuscript

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Permalink - https://westminsterresearch.westminster.ac.uk/item/9x02z/politics-vs-economics-unintended-consequences-of-governments-interventions-in-airlines-markets


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