To: LLCF who wrote (102198 ) 5/15/2001 9:56:27 AM From: Art Bechhoefer Read Replies (2) | Respond to DAK--The lack of free markets in telecom and air travel does not work very well, contrary to what some people think. Yes, it works, but with some undesirable side effects. For example, in air travel, the carriers want only the most profitable routes, such as New York to Los Angeles. Not surprisingly, under a deregulated system, you get bargain fares from NY to LA, with customers often paying one-third or less what they would pay from, say Rochester, NY to Washington, DC. Thus, the issue to consider is whether the whole nation is better served by cheap fares from NY to LA at the expense (and I mean economic development expense) of much higher fares between less popular sources and destinations. Under a free market system, a great disparity in price will develop, with the usual consequences.
