Airline mergers lead to monopoly, hurting consumers in Taiwan's air industry.
The article discusses how Taiwan has been deregulating its air transportation industry over the past 14 years, removing many regulations to create a more open market. However, economic authorities have started re-regulating certain aspects of the industry, leading to conflicts between aviation and business administration. This has resulted in airline mergers, reduced competition, and potential cartel activities. The changes have also affected consumer welfare and fair trade laws in Taiwan. The study uses consumer surplus and welfare theories to analyze these conflicts and suggests further numerical analysis to explore the issues in more depth.