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Public interest or regulatory capture: Theory and evidence from China’s airfare deregulation

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成果类型:
期刊论文
作者:
Li, Kai;Long, Cheryl*;Wan, Wei
通讯作者:
Long, Cheryl
作者机构:
[Li, Kai] Xiamen Univ, Dept Int Econ & Business, Sch Econ, Xiamen, Fujian, Peoples R China.
[Li, Kai; Long, Cheryl] Xiamen Univ, WISE, Xiamen, Fujian, Peoples R China.
[Long, Cheryl] Xiamen Univ, Sch Econ, Dept Econ, Xiamen, Fujian, Peoples R China.
[Wan, Wei] Cent China Normal Univ, Sch Econ & Business Adm, Wuhan, Hubei, Peoples R China.
通讯机构:
[Long, Cheryl] X
Xiamen Univ, WISE, Xiamen, Fujian, Peoples R China.
Xiamen Univ, Sch Econ, Dept Econ, Xiamen, Fujian, Peoples R China.
语种:
英文
关键词:
Regulatory capture;Public interest;Airfare cap;Airline deregulation
期刊:
Journal of Economic Behavior & Organization
ISSN:
0167-2681
年:
2019
卷:
161
页码:
343-365
基金类别:
National Science Foundation of ChinaNational Natural Science Foundation of China (NSFC) [71273217, 71741001, 71790601, 71790600]; National Social Science Foundation of China [2015MZD006]; Central Higher Education Fundamental Research Fund [20720151001, 20720171067]
机构署名:
本校为其他机构
院系归属:
经济与工商管理学院
摘要:
The study is motivated by two seemingly contradictory patterns observed in China's airline industry with prevalent airfare caps. On the one hand, airfares tend to be higher and thus airfare caps are more likely to be binding in routes operated by fewer airlines; but on the other hand, it is in these same routes where airfare caps are more likely to be deregulated. To explain this apparent paradox, we build a simple theoretical model, which derives distinctive predictions from the public interest theory versus the capture theory of regulation. When empirically testing the model, we find more su...

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