The Cost of Australian Regulation of International Air Travel
- 1 October 1978
- journal article
- research article
- Published by SAGE Publications in Australian Journal of Management
- Vol. 3 (2) , 163-174
- https://doi.org/10.1177/031289627800300204
Abstract
This paper estimates the welfare cost of the Australian government regulations on international air travel. It is argued that prices are higher than they would be in the absence of the regulations and that most of the resulting loss of consumer surplus is dissipated in inefficient airline operations or lobbying and enforcement costs. The welfare cost to consumers, allowing for a loss of quality in the change to a more competitive market, is estimated to be about $580 million each year.Keywords
This publication has 3 references indexed in Scilit:
- Guaranteed Market Share Arrangements in Passenger Motor VehiclesAustralian Journal of Management, 1977
- The Social Costs of Monopoly and RegulationJournal of Political Economy, 1975
- The Effect of Price and Entry Regulation on Airline Output, Capacity and EfficiencyThe Bell Journal of Economics, 1975