Trade – A Catalyst for Peace?

The trade regime agreed in the Paris Protocol was determined by political rather than economic considerations. It failed to create a level playing-field between Israeli and Palestinian producers, because of Israeli non-tariff barriers and the lack of provision for external arbitration of disputes between parties with unequal powers. The novel element in the agreement of the three lists of specified goods generated uncertainties and conflicts, as well as some side benefits for the Palestinian Authority. The arrangements for the clearance of import and other taxes to the PA were complex and conflict-generating. Recommendations are made for improvements in future agreements.     

How the presence of low-cost carrier competition scheduling differentiation

This study explores the relation between airline market structure and schedule differentiation. Using a location theory framework applied to product differentiation over the time scale, the analysis relates the level of competition, and the presence of low-cost carriers in non-stop US markets to schedule clustering. As expected from theory, it is found that schedule clustering increases with competition, resulting in reduction in product differentiation. It is also found that this tendency is lower in the presence of low-cost carriers and when there is a strong hub effect where dominant hub airline own, rather than compete with their feeder subsidiaries.