Hot Topic Lesson: The US Airline Industry…Fight or Flight!?
By Greg Caskey, January 2018
INTRODUCTION:
“It’s time to level the flying field. Spread the word to help enforce Open Skies trade agreements and protect the future of US aviation and American Jobs.” #OurFutureOurFight
Have you ever been in a situation in which you complained that a good or service has been offered too cheaply? Yes, too cheaply? Indeed, the question is difficult to understand. After all, one of the hallmark pillars of a market economy is business competition. That is, businesses should be able to freely compete with one another through a process of entrepreneurial discovery to see who can best serve the consumer with quality goods and services at a low price. While this complaint may not be something you’d hear from a consumer, it is certainly an accusation levied by competitors. In a word, welcome to the airline industry!
KEY CONCEPTS:
- Opportunity Cost
- Incentives
- Institutions
- Concentrated Benefits & Diffuse Costs
- Subsidies
MATERIALS:
Download The US Airline Industry…Fight or Flight!? classroom materials.
- Essay (Student Reading)
- Student Handout
- Teacher Guide
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