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Regulation in the air: price-and-frequency caps

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  • Billette de Villemeur, Etienne

Abstract

In spite of deregulation on the air-transportation markets, many connections are still operated by a single operator on regional markets, in particular in Europe. Evidence thus calls for some regulation in this industry. There is, however, a great concern for the (possibly negative) consequences of price regulation on the quality of services. We argue that both aspects should be considered jointly and propose a mechanism for the decentralization of the optimal structure of services. The regulatory procedure is based on the sole book-keeping data and requires the regulator to use only an estimate of travellers' average value of time.

Suggested Citation

  • Billette de Villemeur, Etienne, 2004. "Regulation in the air: price-and-frequency caps," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(6), pages 465-476, November.
    • Handle: RePEc:eee:transe:v:40:y:2004:i:6:p:465-476
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    Citations

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    1. repec:ebl:ecbull:v:12:y:2005:i:4:p:1-11 is not listed on IDEAS
    2. Angela S. Bergantino & Etienne Billette de Villemeur & Annalisa Vinella, 2006. "A Model of Partial Regulation in the Maritime Ferry Industry," SERIES 0010, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jan 2006.
    3. Angela Stefania Bergantino & Billette de Villemeur, Etienne & Vinella, Annalisa, 2012. "Targeted policy design in transportation: the case of the ferry market," Working Papers 12_5, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    4. Ivaldi, Marc & Urdanoz, Miguel & de Villemeur, Étienne, 2007. "Social Costs of Air Traffic Delays," IDEI Working Papers 460, Institut d'Économie Industrielle (IDEI), Toulouse.
    5. Ming Hsin Lin, 2005. "Alliances and entry in a simple airline network," Economics Bulletin, AccessEcon, vol. 12(4), pages 1-11.
    6. Valido, Jorge & Pilar Socorro, M. & Hernández, Aday & Betancor, Ofelia, 2014. "Air transport subsidies for resident passengers when carriers have market power," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 388-399.
    7. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    8. Angela S. Bergantino & Etienne Billette De Villemeur & Annalisa Vinella, 2011. "Partial Regulation in Vertically Differentiated Industries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(2), pages 255-287, April.
    9. Presto, Felix & Gollnick, Volker & Lau, Alexander & Lütjens, Klaus, 2022. "Flight frequency regulation and its temporal implications," Transport Policy, Elsevier, vol. 116(C), pages 106-118.
    10. Angela Stefania Bergantino & Billette de Villemeur, Etienne & Vinella, Annalisa, 2012. "Targeted policy design in transportation: the case of the ferry market," Working Papers 1205, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    11. Joan Calzada & Xavier Fageda, 2012. "Discounts and Public Service Obligations in the Airline Market: Lessons from Spain," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(4), pages 291-312, June.
    12. Ivaldi, Marc & Quinet, Emile & Urdanoz, Miguel & de Villemeur, Étienne, 2014. "Airlines, Delays, Social Optimum, Calibration," IDEI Working Papers 842, Institut d'Économie Industrielle (IDEI), Toulouse.

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