I'd also like to know a suggested structure for 15mark Analyse questions?
I understand it's just describe in detail, but how many concepts should I include e.g. if its for negative externalities, should I talk about how negative externalities lead to market failure giving atmospheric pollution as an example or should I offer more than one externalities in my example? Also should I conclude and should it be in any depth?

Reply 85

don'tTRIP.

OP

2

Have they asked about contestability of the airline market yet?

Reply 86

Chazzybish

Original post by ConfusedChris

I'd also like to know a suggested structure for 15mark Analyse questions?
I understand it's just describe in detail, but how many concepts should I include e.g. if its for negative externalities, should I talk about how negative externalities lead to market failure giving atmospheric pollution as an example or should I offer more than one externalities in my example? Also should I conclude and should it be in any depth?

I'd give three main points that you clearly analyse (usually mark schemes say 2 but to be safe give three as you have time and one of your points might not be as strong). That example is good, remember to apply it to transport (e.g. arising from congestion or what have you) and perhaps expand a bit on the cost of pollution (e.g. health or environmental effects). That depends however on whether the question focuses exclusively on negative externalities or whether this forms only part of a bigger point on another topic.

Generally I don't conclude 15 mark questions because there's usually nothing to say that you haven't already said and you don't get any marks for structuring your answer on 15 mark questions AFAIK. It should be quite developed - you have about 30 minutes to write it so you have plenty of time to get some depth into your points.

Hope this helps.

Reply 87

koolkelv

2

Well, good luck tomorrow everyone!

Reply 88

mspmsp

Any ideas on key diagrams to remember?

Reply 89

P.Patel

1

Original post by mspmsp

Any ideas on key diagrams to remember?

Market failure and the market forms (monopoly, natural monopoly, monopolistic competition and oligopoly)

Reply 90

Redolent

10

Does anyone know what actually happened regarding the deregulation the air travel industry a few years ago? All I know is it happened and it led to companies like Ryanair getting a decent share of the market

Also, does anyone know how they apply for runway slots or whatever it is? Is it a bit like the bidding system used on franchising?

Cheers :smile:

Reply 91

Hicky

1

Original post by Redolent

Does anyone know what actually happened regarding the deregulation the air travel industry a few years ago? All I know is it happened and it led to companies like Ryanair getting a decent share of the market

Also, does anyone know how they apply for runway slots or whatever it is? Is it a bit like the bidding system used on franchising?

Cheers :smile:

The Open Skies agreement liberalised the transatlantic market and made it so new landing slots are given to new entrants to the market. It basically made it so that any firm could buy landing slots in any airport and fly to any international airport. It increased contestability but it didn't decrease market share necessary - some international flights such as Fort Worth / Heathrow are still entirely dominated by two firms (American Airlines and British Airways).

Reply 92

Redolent

10

Original post by Hicky

The Open Skies agreement liberalised the transatlantic market and made it so new landing slots are given to new entrants to the market. It basically made it so that any firm could buy landing slots in any airport and fly to any international airport. It increased contestability but it didn't decrease market share necessary - some international flights such as Fort Worth / Heathrow are still entirely dominated by two firms (American Airlines and British Airways).

Ahh, thanks :smile:

I just realised it came up in a paper a couple of years ago as one of the essay questions, but hopefully it'll come up this year as the data response or something.

I have a feeling the paper might be focused on the bus market though

Reply 93

don'tTRIP.

OP

2

Is a natural monopoly productively and allocatively efficient?

Reply 94

ConfusedChris

They are allocatively efficient since they do not have a profit maximising nature and consumers are being charged the price it costs to produce one extra unit of output, instead of where MC= MR

Reply 95

ConfusedChris

What market structure is the air market in the UK- Was it an oligopoly and since deregulation market share has become less concentrated and more like monopolistic competition?

Reply 96

don'tTRIP.

OP

2

Original post by ConfusedChris

What market structure is the air market in the UK- Was it an oligopoly and since deregulation market share has become less concentrated and more like monopolistic competition?

Prior to deregulation, I'd say the air market was very concentrated so perhaps a monopoly/duopoly? I'm pretty sure it's now an oligopoly as, although there have been many new entrants, very high barriers remain :holmes:

Reply 97

ray_charlene

9

if these come up I'm screwed: privatisation, franchising, oligopoly, monopolistic, contestable, sustainble
I spent most time doing efficiency, coba, market failure and monopoly :/

Reply 98

JACKMSS

Privatisation came in in January in section A so I doubt it will come up again, but theres always a chance it will. My advice for this exam is to just keep a cool head and dont panic. Think about your answers before you start writing just anything.

Original post by don'tTRIP.

Prior to deregulation, I'd say the air market was very concentrated so perhaps a monopoly/duopoly? I'm pretty sure it's now an oligopoly as, although there have been many new entrants, very high barriers remain :holmes:

This depends upon context. Before deregualtion Id say it was an oligopoly with only a few large firms competing. After deregulation things changed. Short haul flights can be said to be more contestable as they have lower barriers to entry. However, long haul flights remain an oligopoly and are less contestable as only a select few firms can afford to invest in such large aircraft and the costs of fuel needed to fly the longer distances, which act as barriers to entry for smaller firms.

Reply 99

tornzy

In my opinion,

SECTION A was wierd, especially that 2 mark question about market concentration

SECTION B - Couldnt have been happier :smile:

Overall, I thought it was an okay exam, perhaps slightly harder than Jan 2012. How did you guys find it? Grade boundary predictions?

F584 Transport Economics June 2012

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