The last few decades have witnessed substantial liberalization trends in various industries and countries. Starting with the deregulation of the US airline industry in 1978, regulatory restructuring took place in further network industries such as telecommunications, electricity or railways in...

This paper develops a model that measures the equilibrium changes and welfare consequences of liberalizing the fare, entry and service levels of a bilateral air transport agreement. The model also provides measures of the distribution of gains and losses across the consumers and airlines of each...