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Incentives in landing slot problems

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  • Schummer, James
  • Abizada, Azar

Abstract

During weather-induced airport congestion, landing slots are reassigned based on flights' feasible arrival times and cancelations. We consider the airlines' incentives to report such information and to execute cancelations, creating positive spillovers for other flights. We show that such incentives conflict with Pareto-efficiency, partially justifying the FAA's non-solicitation of delay costs. We provide mechanisms that, unlike the FAA's current mechanism, satisfy our incentive properties to the greatest extent possible given the FAA's own design constraints. Our mechanisms supplement Deferred Acceptance with a “self-optimization” step accounting for each airline's granted right to control its assigned portion of the landing schedule.

Suggested Citation

  • Schummer, James & Abizada, Azar, 2017. "Incentives in landing slot problems," Journal of Economic Theory, Elsevier, vol. 170(C), pages 29-55.
  • Handle: RePEc:eee:jetheo:v:170:y:2017:i:c:p:29-55
    DOI: 10.1016/j.jet.2017.04.003
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    More about this item

    Keywords

    Mechanism design; Landing slots; Matching; Incentives;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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