Category: transportation

Transportation

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Whither Uber? Competitive Dynamics in Transportation Networks

Edelman, Benjamin. “Whither Uber? Competitive Dynamics in Transportation Networks.” Competition Policy International 11, no. 1 (Spring-Fall 2015).

Transportation Network Companies offer notable service advances–but do they comply with the law? I offer evidence of some important shortfalls, then consider how the legal system might appropriately respond. Though it is tempting to forgive many violations in light of the companies’ benefits, I offer a cautionary assessment. For one, I note the incentives that might result, including a race-to-the-bottom as a series of companies forego all manner of requirements. Furthermore, the firms that best compete in such an environment are likely to be those that build a corporate culture of ignoring laws, a diagnosis that finds support in numerous controversial Uber practices. On the whole, I suggest evenhanded enforcement of applicable laws, with thoughtful changes implemented with appropriate formality, but no automatic free pass for the platforms that have recently framed laws and regulations as suggestions rather than requirements.

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Digital Business Models Should Have to Follow the Law, Too

Digital Business Models Should Have to Follow the Law, Too. HBR Online. January 2, 2015.

A timeless maxim suggests that it’s better to ask forgiveness than permission. Nowhere is that more prominent than in the current crop of digital businesses, which tend to skirt laws they find inconvenient. Though these services and their innovative business models win acclaim from consumers and investors, their approach to the law is troubling — both for its implications for civil society and in its contagious influence on other firms in turn pressured to skirt legal requirements.

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Distribution at American Airlines (teaching materials)

Edelman, Benjamin. “Distribution at American Airlines (A).” Harvard Business School Case 909-035, January 2009. (Revised June 2009.) (educator access at HBP. request a courtesy copy.)

American Airlines sought to reduce the fees it pays to global distribution services (GDSs)–such as SABRE–to reach travel agents. But GDSs held significant tactical advantages. For example, GDSs had signed long-term exclusive contracts with the corporate customers who were American’s best customers. Furthermore, travel agents tended to favor whichever GDS offered the highest commissions–impeding price competition among GDSs. Against this backdrop, American considered how best to cut its GDS costs.

Supplements:

Distribution at American Airlines (B) – Supplement (HBP 909036)

Distribution at American Airlines (C) – Supplement (HBP 913034)

Distribution at American Airlines (D) – Supplement (HBP 913035)

Teaching Materials:

Distribution at American Airlines (A-D) – Teaching Note (HBP 909059)

Distribution at American Airlines – Slide Supplement (HBP 914039)

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Objections to Tentative Decision and Order to Show Cause (IATA 787)

Edelman, Benjamin. “Objections to Tentative Decision and Order to Show Cause (IATA 787).” June 2014. (Before the Department of Transportation.)

I critique Order 2014-5-7 (Docket No. DOT-OST-2013-0048-0415) to the extent that the DOT permits, or purports to permit, airlines to sell tickets other than in accordance with published tariffs. I argue that tariffs provide important benefits to passengers and should be continued notwithstanding the proposed IATA Resolution 787.