1. How has deregulation impacted the US domestic markets' pricing policies? Describe the changes in recent years of international markets fare setting practices.
2. Why is the pricing environment facing airlines today more challenging than in the days before deregulation? Include the changes faces in both domestic and international markets.
3. What is meant by differential pricing? What are the benefits associated with it? What are some of the arguments against it?
4. What are some of the reasons an airline may choose to lower its fares? When should an airline take the risk of leading the market in terms of a price increase?