3 ms·
> I used to think that highly competitive markets with low prices are the best They probably are.. but it's probably not wise to consider a market dominated b
by akira2501 7y ago
> I used to think that highly competitive markets with low prices are the best
They probably are.. but it's probably not wise to consider a market dominated by three players as "competitive."
> Maybe an oligopoly with high profits and strong unions
I also don't think "more monopoly" is the sensible conclusion.
> and that it is not a simple answer.
Why is "more government regulation" not even a part of your consideration? The article itself even hints at this, before deregulation a company like Boeing could exist and be profitable, but after deregulation it becomes beholdant to Wall Street. It seems pretty clear what the solution is.
- kapuasuite 7y agoRegulation and price controls aren’t the same thing, which you seem to be implying.
- pjscott 7y agoMost regulations aren't price controls, but the historical regulations being discussed here are. In the US, routes and prices used to be decided by the Civil Aeronautics Board, removing price competition between airlines. After the price controls were dropped, air travel became a lot more affordable and profit margins got smaller. "Airline deregulation," in a US context, refers to this. (The terminology is a bit unfortunate, but we're stuck with it for now.)