H.R. 5900, which was passed by Congress in July 2010, legislated more restrictive pilot rest requirements and increased the number of pilot training hours required to obtain an airline transport pilot license. This paper examines the effect that raising the occupational licensing standards have...

Do firms have adequate incentives to invest in anti-terrorism mechanisms? This paper develops a framework for addressing this issue when the security choices by one agent affect the risks faced by others. We utilize the airline security problem to illustrate how the incentive by one airline to...