DALLAS — Before we claim that the US airline industry resembles an oligopoly, we must first understand what the term means.
An oligopoly is a market structure in which a small number of large companies work to dominate a specific market segment, either explicitly or implicitly. This is normally done through collusion, and due to the limited competition between these firms, each firm can influence the others through their actions.
Firms in oligopolistic markets set prices but do not…