A summary of the theory behind airline deregulation, and a look at the future evolution of the airline industry as it adapts to its new environment.

Using a model developed to examine the determinants of air fares, the authors discuss the relationship between airline industry competitiveness and fare increases.

An analysis of competition for scarce inputs, describing the outcome of an auction of takeoff and landing slots between two airline carriers and the possible outcomes from a merger or takeover wave. The results suggest that the concern over monopolization of airports may be misplaced.