Airport Pricing and Concession Revenues

Achim I. Czerny ()

No 09-05, WHU Working Paper Series - Economics Group from WHU - Otto Beisheim School of Management

Abstract: This paper considers a congested airport that provides aeronautical services to airlines and concessions to retailers or, respectively, car rental companies. It is shown that airport retailers exert downward pressure on the private aeronautical charge. On the other hand, the effect of car rentals on the private aeronautical charge is ambiguous. By contrast, the first-best airfare and aeronautical charge are independent of retail profits, while they are positively related to car rentals. Finally, the comparison of private and welfare-oriented airport behavior shows that private behavior can lead to the welfare-optimal outcome when commercial services exist.

Keywords: Airport pricing; concessions; retail services; car rentals; congestion (search for similar items in EconPapers)
JEL-codes: D42 D62 L12 L93 R41 R48 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:whu:wpaper:09-05

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