Competitive Effects of Exchanges or Sales of Airport Landing Slots

James Reitzes (), Brendan McVeigh (), Nicholas Powers () and Samuel Moy ()

Review of Industrial Organization, 2015, vol. 46, issue 2, 95-125

Abstract: We investigate the competitive effects of exchanges or sales of airport landing slots, using a model where airlines allocate their slot endowments across routes consistent with a Cournot–Nash equilibrium. With symmetric endowments, an increase in the number of slot-holding airlines raises social welfare and consumer surplus. Under asymmetric slot endowments, larger slot holders serve “thin” demand routes that are not served by smaller slot holders. Transfers of slots from larger to smaller slot holders increase social welfare and consumer surplus; however, fewer routes may be served. These results may be reversed if airlines face substantial route-level fixed costs. Copyright Springer Science+Business Media New York 2015

Keywords: Landing slots; Slot exchanges; Airline competition; Consumer surplus; Multi-product production (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11151-014-9438-8 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:46:y:2015:i:2:p:95-125

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2

DOI: 10.1007/s11151-014-9438-8

Access Statistics for this article

Review of Industrial Organization is currently edited by L.J. White

More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().