Richard Caves analyzes the market structure, conduct, and performance of the United States domestic passenger airlines. A unique aspect of the industry is the close regulation of its daily business functioning by the Civil Aeronautics Board. Although this influence affects every managerial decision, Caves finds that the economic elements in the industry's market structure still play a vital role in determining performance and conduct. He shows that the airline industry has structural characteristics that would ensure market performance of reasonable quality with less extensive economic regulation.

His book is more than a comprehensive evaluation of the air-transport industry; it is concerned with the basic question of governmental control. Questions of regulation, already materially affecting the American economy, are often before the public. Such industry studies as this clarify the net effect on the general economic welfare of industrial controls—how they work, where they work best, and the advantages of increasing or decreasing them.