Flight of (Expensive) Fancy

Starting 1/1/12 Europe will impose a cap-and-trade system on airlines to reduce their greenhouse gas emissions. Airlines will initially get free permits to cover 85% of their existing carbon-dioxide emissions but will have to buy any additional permits. While the permit price is still TBA, it seems it will be based on a price of…

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Car Rental Rationality?

Airlines and hotels charge cancellation fees but not car rental firm. Why? I think it’s because car renters usually arrive by plane and then go to a hotel. The car rental agency can thus free ride on the cancellation policies of the others. That is, to cancel the car you have to cancel your trip…

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