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Institutions for Flying: How States Built a Market in International Aviation Services

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  • Richards, John E.

Abstract

In the aftermath of World War II, states created a complex set of bilateral and multilateral institutions to govern international aviation markets. National governments concluded bilateral agreements to regulate airport entry and capacity and delegated to the airlines, through the International Air Transport Association (IATA), the authority to set fares and the terms of service in international markets. The resulting mixture of public and private institutions produced a de facto cartel that lasted for more than thirty years. Consistent with the Rational Design framework put forth by Barbara Koremenos, Charles Lipson, and Duncan Snidal, I argue that the institutions states created reflect the bargaining and incentive problems generated by international aviation markets. This case provides support for four of the Rational Design conjectures and slightly contradicts three others.

Suggested Citation

  • Richards, John E., 2001. "Institutions for Flying: How States Built a Market in International Aviation Services," International Organization, Cambridge University Press, vol. 55(4), pages 993-1017, October.
    • Handle: RePEc:cup:intorg:v:55:y:2001:i:04:p:993-1017_44
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    Cited by:

    1. Mette Eilstrup-Sangiovanni, 2022. "Ordering global governance complexes: The evolution of the governance complex for international civil aviation," The Review of International Organizations, Springer, vol. 17(2), pages 293-322, April.
    2. Cornelia Woll, 2005. "Learning to Act on World Trade. Preference Formation of Large Firms in the United States and the European Union," Working Papers hal-01065571, HAL.
    3. Woll, Cornelia, 2005. "Learning to Act on World Trade: Preference Formation of Large Firms in the United States and the European Union," MPIfG Discussion Paper 05/1, Max Planck Institute for the Study of Societies.
    4. repec:hal:spmain:info:hdl:2441/8529 is not listed on IDEAS
    5. repec:spo:wpecon:info:hdl:2441/8529 is not listed on IDEAS
    6. Francisco Santos-Carrillo & Luis A. Fernández-Portillo & Antonio Sianes, 2020. "Rethinking the Governance of the 2030 Agenda for Sustainable Development in the COVID-19 Era," Sustainability, MDPI, vol. 12(18), pages 1-24, September.
    7. repec:hal:wpspec:info:hdl:2441/8529 is not listed on IDEAS
    8. Cornelia Woll, 2005. "Learning to Act on World Trade. Preference Formation of Large Firms in the United States and the European Union," SciencePo Working papers Main hal-01065571, HAL.
    9. repec:spo:wpmain:info:hdl:2441/8529 is not listed on IDEAS

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