Market Structure and Internalization of Congestion in Air Transportation

Kurt Van Dender ()
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Kurt Van Dender: Department of Economics, University of California-Irvine

No 60717, Working Papers from University of California-Irvine, Department of Economics

Abstract: We use a simple analytical framework to derive pricing rules for oligpolistic airlines at airports that are served by competitive airlines as well. The pricing rules show how the degree of internalization of marginal congestion costs depends on market structure. The analysis illustrates the importance of selecting an accurate representation of market structure, when making recommendations about the desirability of congestion pricing mechanisms.

Keywords: Airports; Airline; Congestion; Congestion tolls; Oligopoly (search for similar items in EconPapers)
JEL-codes: L13 L93 R41 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2007-04
New Economics Papers: this item is included in nep-com, nep-mic and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:irv:wpaper:060717

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