Privatization, Regulation And Airport Pricing: An Empirical Analysis For Europe
AbstractThis paper examines factors determining prices that airports charge to airlines. Using data for 100 large airports in Europe, we find that they charge higher prices when they move more passengers. Additionally, competition from other transport modes and other nearby airports imposes some discipline on the pricing behavior of airports. Low-cost carriers and airlines with a high market share seem to have a stronger countervailing power. Finally, we find that private airports not regulated charge higher prices than public or regulated airports. From our analysis, we can infer that market power of each airport is dependent upon its specific characteristics.
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Bibliographic InfoPaper provided by European University Institute in its series RSCAS Working Papers with number 2009/27.
Date of creation: 09 Jun 2009
Date of revision:
Privatization; regulation; pricing; air transportation; airports;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-COM-2009-07-11 (Industrial Competition)
- NEP-MIC-2009-07-11 (Microeconomics)
- NEP-MKT-2009-07-11 (Marketing)
- NEP-REG-2009-07-11 (Regulation)
- NEP-URE-2009-07-11 (Urban & Real Estate Economics)
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