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Locational and monopoly rents at airports: creating them and shifting them

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  • Forsyth, Peter

Abstract

Airports have the potential because of their monopoly position to extract economic rent. This paper is concerned with variations in the rent obtained by airports and the factors that influence this. It extends the narrow focus on an airport's rent acquisition per se to see to what extent an airport has the potential it has to redistribute rent away from other rent earning agencies. Finally, it looks at the wider efficiency issue of whether rent seeking by airports can stimulate dynamic efficiency in terms of the types and quality of services that it may offer.

Suggested Citation

  • Forsyth, Peter, 2004. "Locational and monopoly rents at airports: creating them and shifting them," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 51-60.
    • Handle: RePEc:eee:jaitra:v:10:y:2004:i:1:p:51-60
    DOI: 10.1016/j.jairtraman.2003.10.003
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    References listed on IDEAS

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    1. Zhang, Anming & Zhang, Yimin, 1997. "Concession revenue and optimal airport pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 287-296, December.
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    Cited by:

    1. Achim I. Czerny & Zijun Shi & Anming Zhang, 2015. "Can market power be controlled by regulation of core prices alone?: An empirical analysis of airport demand and car rental price," Tinbergen Institute Discussion Papers 15-041/VIII, Tinbergen Institute.
    2. Zhang, Anming & Czerny, Achim I., 2012. "Airports and airlines economics and policy: An interpretive review of recent research," Economics of Transportation, Elsevier, vol. 1(1), pages 15-34.
    3. Kratzsch, Uwe & Sieg, Gernot, 2012. "No need to regulate airports with predominantly non-aeronautical revenues," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 52, pages 1-7.
    4. Button, Kenneth, 2005. "A simple analysis of the rent seeking of airlines, airports and politicians," Transport Policy, Elsevier, vol. 12(1), pages 47-56, January.
    5. Kidokoro, Yukihiro & Zhang, Anming, 2022. "Airport cities and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 187-209.
    6. Chakarin Bejrananda & Yuk Lee & Thanchanok Bejrananda, 2016. "Spatial Patterns Of Economic Rents: Developing Suvarnabhumi International Airport, Thailand," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 11(03), pages 1-13, September.
    7. Fuerst, Franz & Gross, Sven, 2018. "The commercial performance of global airports," Transport Policy, Elsevier, vol. 61(C), pages 123-131.
    8. Achim I. Czerny, 2012. "Public Versus Private Airport Behavior When Concession Revenues Exist," WHU Working Paper Series - Economics Group 12-01, WHU - Otto Beisheim School of Management.
    9. Czerny, Achim I., 2013. "Public versus private airport behavior when concession revenues exist," Economics of Transportation, Elsevier, vol. 2(1), pages 38-46.
    10. Choi, Jong Hae, 2021. "Changes in airport operating procedures and implications for airport strategies post-COVID-19," Journal of Air Transport Management, Elsevier, vol. 94(C).
    11. Evangelinos, Christos & Püschel, Ronny & Goldhahn, Susan, 2011. "Inverting the regulatory rules? Optimizing airport regulation to account for commercial revenues," Discussion Papers 1/2011, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    12. Achim I. Czerny & Anmin Zhang, 2015. "Single-Till versus Dual-Till Regulation of Airports," Tinbergen Institute Discussion Papers 15-049/VIII, Tinbergen Institute.
    13. Kidokoro, Yukihiro & Lin, Ming Hsin & Zhang, Anming, 2016. "A general-equilibrium analysis of airport pricing, capacity, and regulation," Journal of Urban Economics, Elsevier, vol. 96(C), pages 142-155.
    14. Chakarin Bejrananda & Yuk Lee & Thanchanok Khamkaew, 2015. "The Spatial Pattern of Economic Rents of An Airport Development Area: Lessons Learned from the Suvarnabhumi International Airport, Thailand," Proceedings of International Academic Conferences 2604285, International Institute of Social and Economic Sciences.
    15. Czerny, Achim I. & Shi, Zijun & Zhang, Anming, 2016. "Can market power be controlled by regulation of core prices alone? An empirical analysis of airport demand and car rental price," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 260-272.
    16. Kidokoro, Yukihiro & Zhang, Anming, 2018. "Airport congestion pricing and cost recovery with side business," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 222-236.

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