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Lessons from Deregulation: Telecommunications and Airlines after the Crunch, by Alfred E. Kahn
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Over the last several years, the value of stocks in both the airline and the telecommunications industries have dropped catastrophically. Since these industries were among the most important—and most visible—to have been unleashed from regulation in recent decades (albeit in widely differing degree), their difficulties have raised the question of whether their deregulation should be reconsidered or even reversed.
Alfred E. Kahn, one of the foremost authorities on deregulation, argues in this book that every passing year demonstrates the superiority of the road chosen for the airlines. He contrasts the financial meltdowns of both the airline and telecommunications industries with others taking place at the same time, particularly in technology-related stocks and "dot.coms," pointing out that these sectors were also relatively free of direct economic regulation. Their experience provides a useful counter to the natural tendency to blame all the woes of aviation and telecommunications on government policy.
This book provides a valuable and accessible guide to unraveling the complex world of network deregulation. It will serve as a reference point for practioners and policymakers, as well as an important introduction for the general public.
- Sales Rank: #2226029 in Books
- Brand: Brand: AEI-Brookings Joint Center for Regulatory Studies
- Published on: 2003-12-22
- Original language: English
- Number of items: 1
- Dimensions: 9.10" h x .30" w x 6.04" l, .34 pounds
- Binding: Paperback
- 88 pages
- Used Book in Good Condition
Review
"Excellent reading on [deregulation] is a new paper by Alfred Kahn, doyen of America's regulation economists. In a study jointly published by the American Enterprise Institute and the Brookings Institution, Mr. Kahn assaults the widely held view that America's deregulation of airlines and telecoms has been a terrible failure-and the main cause of the financial disasters lately visited upon those industries." — The Economist, 12/6/2003
About the Author
Alfred E. Kahn is the preeminent authority on public utility deretulation in the United States and author of the classic two-volume The Economics of Regulation: Principles and Institutions (Wiley, 1970-71). He served as an economic adviser to President Carter and chairman of the New York Public Service Commission, the Civil Aeronautics Board, and the Council on Wage and Price Stability. He is the Robert Julius Thorne Professor of Political Economy, Emeritus, at Cornell University.
Most helpful customer reviews
2 of 2 people found the following review helpful.
At least he's consistent
By Spamvikktim
In this short book, Fred Kahn gives us his take on airline and telephone deregulation. He thinks they're both swell. His analysis of airline dereg is well thought out, as you'd expect from the person most identified with it, but I fould his analysis of telephone dereg much less persuasive. He lines up solidly on the side of the Bells, and although some of his arguments are clearly true, e.g., you can't create true competition by forcing one competitor to sell below cost to another, in all I found him far too accepting of the Bells' self serving arguments.
Kahn writes well, and even if you disagree with him, he's well worth reading. Any student of industrial policy or regulation should invest an hour and read this book, either on paper or the PDF on the publisher's web site.
1 of 1 people found the following review helpful.
A Good Read!
By Rolf Dobelli
You would hardly expect economist Alfred E. Kahn, the grandfather of deregulation, to back down on the concept now - and he doesn't. This helpful, up-to-date guide gives a snapshot of Kahn's take on the state of aviation and telecommunications deregulation amid the economic struggles of the post-bubble, post-Sept. 11 era. Does deregulation still serve the public's interest? Kahn, whom you can thank or curse the next time you board a cheap, overcrowded flight, argues staunchly that deregulation's biggest problems come from regulatory authorities who succumb to the temptation to, well, regulate. This is particularly true in the arcane field of telecommunications policy, where some governmental bodies have passed regulations designed to stimulate artificial, rather than market-driven, competition. Overall, the book is stronger when Kahn analyzes the complexities of aviation deregulation than it is when he unravels telecommunications policy. We highly recommend it to policy wonks who love what Kahn hath wrought and to those who wish they could hang up on it.
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