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Auctioning airport slots (?)

Author

Listed:
  • Nicolas Gruyer

    (LEEA (air transport economics laboratory), ENAC)

  • Nathalie Lenoir

    (LEEA (air transport economics laboratory), ENAC)

Abstract

The current allocation of slots on congested European airports constitutes an obstacle to the effective liberalisation of air transportation undertaken in Europe. With a view to favouring efficient slot utilisation and competition, as is the goal of the European commission, we propose to use a market mechanism, based on temporary utilisation licences. In order to allocate those licences, we propose and describe an iterated combinatorial auction mechanism where a percentage of licences would be reallocated each season. A secondary market would also be set up in order to reallocate slots during a season. Since a combinatorial auction involve a complex optimisation procedure, we describe how it can be made to work in the case of auctions.

Suggested Citation

  • Nicolas Gruyer & Nathalie Lenoir, 2003. "Auctioning airport slots (?)," Economics Working Papers 01, LEEA (air transport economics laboratory), ENAC (french national civil aviation school).
    • Handle: RePEc:enc:abcdef:auction1
    Note: Type of Document - pdf; pages: 18.
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    File URL: http://www.enac.fr/recherche/leea/documents/GruyerLenoirAuctioningSlots.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Nicolas Gruyer & Nathalie Lenoir, 2004. "Allocating airport slots : a combinatorial auction mechanism," Post-Print hal-01021610, HAL.

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    More about this item

    Keywords

    slots; airports; licence; auction; combinatorial;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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