 Airport pricing versus (grandfathered) slots: A generalizationHao Lang and Achim I. Czerny Economics of Transportation, 2022, vol. 29, issue C Abstract: Many passengers can choose among various destinations for their flight trips (for instance, a leisure trip from Asia to Europe or the US). This study tests the sensitivity of the outcomes of equilibrium congestion policies with respect to changes in airport network and demand structures. A major feature is to incorporate substitute destination choices for origin–destination passengers into the analysis of equilibrium airport congestion policies involving slot or pricing policies. The analysis shows that the presence of substitute destination choices is a necessary condition for equilibrium slot quantities to reach the first-best outcome that maximizes the welfare of all airport regions whereas equilibrium pricing levels will always be too high relative to the first-best prices independent of the presence or absence of substitute destination choices. Examples based on specific functional forms and numerical simulations are used to illustrate the main results. Keywords: Network; Airports; Slots; Congestion pricing; Imperfect substitutes; Origin–destination passengers (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:29:y:2022:i:c:s2212012221000526 DOI: 10.1016/j.ecotra.2021.100249 Access Statistics for this article Economics of Transportation is currently edited by Mogens Fosgerau and Erik Verhoef More articles in Economics of Transportation from Elsevier |
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