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Regulations can be used appropriately to stop a race to the bottom, and I think airline seats are a good example. When credit card companies started tweaking t
by zaroth 9y ago
Regulations can be used appropriately to stop a race to the bottom, and I think airline seats are a good example.
When credit card companies started tweaking terms and conditions to make their cards more and more hostile to consumers, it's hard to be the company that still offers the "right" terms (e.g. Payments above the minimum apply to the highest interest balances first) when most consumers don't even understand what I just wrote.
Similar with airline shopping, seat pitch just isn't visible enough, and even if it was right there next to the price, do most shoppers understand what 28" pitch really means?
A perfectly functioning free market relies on perfect information available to the consumer. Today, we get a price and (usually) a brand name and that's about it. So competition is almost entirely on price.
In cases like these, it benefits everyone to make some regulations setting reasonable ground rules. Freeing airlines from having to compete against 28" seat pitch is like freeing credit card companies from having to compete against predatory terms and conditions.
Yes of course this has an impact on the bottom line. It would marginally increase the cost of tickets the same way the CARD Act made it less profitable to issue cards to certain people, and the same way airbags make cars more expensive.
There are other practices I disdain, like charging extra for a seat assignment or a boarding pass, but those are more visible when buying the ticket and I can more easily avoid it.
I do think if we could get much better and clear labeling on the differences between available seats (pitch, width, recline, power, screen, entertainment, food) it would help a lot. But airline shopping is already very painful, data overload is a real problem.
- ilyanep 9y agoIf the problem is that the data is there but people don't understand it, then you'd see consumers flying a shitty budget airline like Spirit once and then going back to another airline. People will regularly come back to these budget airlines. I really do think that consumers' revealed preferences are just not what most people think they should be.
- zaroth 9y agoI can tell you for me, that's exactly what happened. I flew Spirit exactly once. I couldn't stop telling people how horric it was for weeks and absolutely I would never even consider flying with them again.
- chiefalchemist 9y agoIf we regulated everything consumers didn't understand there wouldn't be much left, eh? :) At some point, ya gotta have a reasonable amount of faith and let'em learn to fish. There are, of course, exceptions. Safety comes to mind. Also, if the government has to spend time and energy poking into the minor and the minutiae there won't be anything left for the big real problems that actually require gov intervention. Is that not what we see today? A gov too often bogged down in bullshit. We debated the size of gov when we should focus on role and quality. Geez. We can't even get the scope of the discussion correct. Gov, like so many things, is a limited resource. We should use it sparingly and wisely. My personal sense is that is not the case. We throw it at everything. Even though it isn't working out well :(