Market Structure and Internalization of Congestion in Air Transportation
AbstractWe use a simple analytical framework to derive pricing rules for oligpolistic airlines at airports that are served by competitive airlines as well. The pricing rules show how the degree of internalization of marginal congestion costs depends on market structure. The analysis illustrates the importance of selecting an accurate representation of market structure, when making recommendations about the desirability of congestion pricing mechanisms.
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Bibliographic InfoPaper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 060717.
Length: 16 pages
Date of creation: Apr 2007
Date of revision:
Airports; Airline; Congestion; Congestion tolls; Oligopoly;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-19 (All new papers)
- NEP-COM-2007-05-19 (Industrial Competition)
- NEP-MIC-2007-05-19 (Microeconomics)
- NEP-URE-2007-05-19 (Urban & Real Estate Economics)
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