Economics at your fingertips  

Price Cap Regulation of Airports: A New Approach

Kevin Currier

Economics Bulletin, 2008, vol. 12, issue 8, 1-7

Abstract: Airports are typically monopolistic providers of aeronautical services. Hence, the widespread privatization of airports within the last 20 years has in general been accompanied by some form of price regulation of aeronautical services. A great deal of attention has been given to the issue of whether the aeronautical price cap should be based upon revenues from both aeronautical and commercial services (the “single-till” approach) or revenues from aeronautical services only (the “dual-till” approach). However, each of these regulatory schemes will in general lead to regulated prices that are Pareto inefficient. This paper presents a price capping scheme that systematically exploits the potential Pareto improvements available under either the single-till or dual-till regimes.

JEL-codes: L5 (search for similar items in EconPapers)
Date: 2008-03-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

Page updated 2022-04-29
Handle: RePEc:ebl:ecbull:eb-08l50001