Regulation, Competition, and Liberalization: The Case of Airlines in Mexico
DOI:
https://doi.org/10.29201/peipn.v3i5.260Keywords:
Deregulation, regulatory policies, Mexican airline industryAbstract
Although there is a consensus around the world to deregulate the airline industry, it is not known which are the most proper Liberalization Policies (LP’s) to improve the effectiveness of the transition from a regulated market into market of free competition. The aim of this essay is to identify which were the LP’s implemented during the deregulation of the domestic airline market in Mexico and to analyze if they were more anticompetitive or more procompetitive. The main findings sustain that some of the LP’s were anticompetitive. In the case of the procompetitive, the improper implementation, the absence of other necessary LP’s and the lack of institutional strength undermined their effectiveness.
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