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Air congestion pricing and passenger types

  • 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.

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Metadaten
Author:Achim I. Czerny, Anming Zhang
URN:urn:nbn:de:hbz:992-opus4-4598
Series (Serial Number):WHU – Working Paper Series in Economics (WP 10/01)
Document Type:Working Paper
Language:English
Date of Publication (online):2017/06/27
Release Date:2017/06/27
Tag:Flughäfen; Luftverkehrsgesellschaften; Passagierarten; Preisbildung; Stauung
Airlines; Airports; Congestion; Passenger types; Pricing; Value of time
Edition:Revised September 2010
Page Number:29
Institutes:WHU Economics Group / Lehrstuhl für Controlling und Regulierungsökonomik
JEL-Classification:D Microeconomics / D4 Market Structure and Pricing / D42 Monopoly
D Microeconomics / D6 Welfare Economics / D62 Externalities
H Public Economics / H4 Publicly Provided Goods / H42 Publicly Provided Private Goods
L Industrial Organization / L1 Market Structure, Firm Strategy, and Market Performance / L12 Monopoly; Monopolization Strategies
L Industrial Organization / L5 Regulation and Industrial Policy / L51 Economics of Regulation
L Industrial Organization / L9 Industry Studies: Transportation and Utilities / L93 Air Transportation
R Urban, Rural, and Regional Economics / R4 Transportation Systems / R41 Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
R Urban, Rural, and Regional Economics / R4 Transportation Systems / R48 Government Pricing; Regulatory Policies; Transportation Planning
Licence (German):Copyright for this publication