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- W595474060 abstract "Regulatory reform in the airline industry aims to reduce market power of individual airlines, but cost conditions in the airline markets often lead to imperfect competition even after reform. Environmental damage, a second type of market failure, is present in both regulated and liberalized airline markets and thereby affects the welfare analysis of airline deregulation. This paper analyses the effects of airline liberalization by taking into account the distortions of market power and environmental damage. Parameter conditions that guarantee a positive welfare effect are derived; using empirical information, it is shown that a positive welfare conclusion may be expected with respect to airline liberalization in the fixed number duopoly case. Non-cooperative taxation also is compared with cooperative tax solutions and it is concluded that liberalization with taxation is always preferred to the case without taxation. Finally, analysis indicates that governments behaving strategically will generally not choose the welfare optimal tax. For low environmental costs, the non-cooperative tax is too high, while the cooperative tax is negative. The reverse is also true: for high environmental costs, the non-cooperative tax is too low while the cooperative tax is positive." @default.
- W595474060 created "2016-06-24" @default.
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- W595474060 date "2002-02-01" @default.
- W595474060 modified "2023-09-23" @default.
- W595474060 title "MARKET STRUCTURE AND ENVIRONMENTAL COSTS: AN ANALYSIS OF AIR TRANSPORT LIBERALIZATION" @default.
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