The welfare effects of the allocation of airlines to different terminals
AbstractMany airports around the world have recently built, rebuilt or are in the process of constructing new terminals. Incumbent airlines and new entrants must be allocated to the new and old facilities. When spaces at airport terminals are directly allocated, the allocation should be done by taking into account the implications for airlines' competition and social welfare, given the airlines' network configuration. We use a theoretical model in which two airlines compete in prices with differentiated products for a given network structure. The model shows that, in general, if airlines are allocated to different terminals, the level of competition is reduced, the ticket prices are higher and the consumer surplus and social welfare are lower. Only in some routes, and under certain conditions on the market size, ticket prices may be lower.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.
Volume (Year): 46 (2010)
Issue (Month): 2 (March)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Barbot, Cristina & Betancor, Ofelia & Socorro, M. Pilar & Viecens, M. Fernanda, 2014. "Trade-offs between environmental regulation and market competition: Airlines, emission trading systems and entry deterrence," Transport Policy, Elsevier, vol. 33(C), pages 65-72.
- Merkert, Rico & Ploix, Boris, 2014. "The impact of terminal re-organisation on belly-hold freight operation chains at airports," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 78-84.
- Ofelia Betancor & Juan Luis JimÃƒÂ©nez, 2011. "When trains go faster than planes: the strategic reaction of airlines in Spain," ERSA conference papers ersa11p295, European Regional Science Association.
- Socorro, M. Pilar & Viecens, M. Fernanda, 2013. "The effects of airline and high speed train integration," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 160-177.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.