Wednesday, July 17, 2002

Congestion Relief: Information Sharing

During World War II the US airplane manufacturers formed an alliance of cooperation rather than competition. Airplane plans were shared, so previously competing companies could manufacturer the same airplanes. In the process proprietary information was exchanged. This experiment during the war was a success, but not business as usual. Scientific knowledge has advanced because of the information sharing technique.

The US airline industry could be much more energy efficient, if only the anti-trust restrictions on collaboration between competing carriers was suspended. This would take a war on oil attitude and government regulation, so conspiring airlines don’t exploit cartel induced monopoly markets. If a market can support more than one flight a day, then one airline should not receive a monopoly to ensure some level of competition.

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