Airport congestion pricing and passenger types

Achim I. Czerny and Anming Zhang

Transportation Research Part B: Methodological, 2011, vol. 45, issue 3, 595-604

Abstract: We consider a public and congested airport served by airlines that may have market power, and two types of travelers with different relative values of time. We find that in the absence of passenger-type-based price discrimination by airlines, it can be useful to increase the airport charge so as to protect passengers with a great relative time value from excessive congestion caused by passengers with a low relative time value. As a result, the socially efficient airport charge can be substantially higher than what we learned from the recent literature on congestion pricing with non-atomistic airlines.

Keywords: Airports; Airlines; Passenger; types; Value; of; time; Congestion; Pricing (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (39)

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