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Question 1.
Explain the theory and practice of 3rd degree price
discrimination in the airline industry
Question 2
Is airline price discrimination just unfair or are there benefits to
both business and leisure passengers?
Question 3
Why would a network carrier, such as American Airlines,
provide service to a small city that an archetypical low-cost-
carrier would not?
Question 4
Most airline routes in the US, Europe, and increasingly
worldwide, are intensely competitive, yet most are oligopolies.
What model of oligopoly is consistent with the price
competition typical of the airline industry? Explain.
Question 5
Define and discuss the major types of air cargo (characterized
by the motivation of the shipper or the reason for using air
freight instead of some form of ground transportation).

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