DOJ investigation prompts lawsuits alleging that airlines are fixing airfares It is alleged that Southwest, American, Delta,

Question:

DOJ investigation prompts lawsuits alleging that airlines are fixing airfares It is alleged that Southwest, American, Delta, and United Airlines have been colluding to limit the increases in their capacity with the intent of increasing airfares. The airlines say the allegations are without merit. The airline industry is highly competitive with more people flying than ever before.

Explain how limiting the increase in capacity could lead to higher airfares.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Economics

ISBN: 9780135897478

9th Edition

Authors: Robin Bade, Michael Parkin

Question Posted: