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Regulation of airline fares under the Civil Aeronautics Board
meant the government prevented the entry of new competitors to
maintain high ticket prices.
made it possible for lower-income Americans to afford air
travel for the first time.
created incentives for optimal resource allocation.
lead to greater innovation in the airline industry at a cost of
higher ticket prices.

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  • 1. Regulation of airline fares under the Civil Aeronautics Board meant the government prevented the entry of new competitors to maintain high ticket prices. made it possible for lower-income Americans to afford air travel for the first time. created incentives for optimal resource allocation. lead to greater innovation in the airline industry at a cost of higher ticket prices.