Forming cognitions by investing in a form: Frequent Flyer Programs in US air travel post-deregulation (1981-1991)

Our empirical case describes how the introduction of Frequent Flyer Programs created a new market form following the US Airline Deregulation Act (1978). Under the previous regulatory regime, the US Civil Aeronautics Board controlled routes and prices and airlines were limited to competing on frequency and quality of service. We show how successive rounds of investments by a variety of market actors helped articulate and consolidate the new market form over a 10-year period. Whereas action preceded cognition in the early stages, the gradual consolidation of the new form provided opportunities for market participants to gain reflexive distance and conjure up further ways to engage with the form.