Question: Why do you think that air carriers are so mutually dependent? How have pricing practices changed since the prederegulation days? What was the major form

  • Why do you think that air carriers are so mutually dependent?
  • How have pricing practices changed since the prederegulation days?
  • What was the major form of competition in the prederegulation era? Discuss some of the causes of the price wars in the 1980s.
  • Do you foresee prices stabilizing in the next several years?
  • Why is there a tendency in oligopolistic industries toward price rigidity and nonprice competition?

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