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Supply side substitutability and potential market power of airports: Case of Amsterdam Schiphol

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  • Bilotkach, Volodymyr
  • Mueller, Juergen

Abstract

This study evaluates the issue of market power of Amsterdam airport Schiphol, focusing on the substitutability between this airport and nearby gateways. We focus separately on substitutability with respect to origin-and-destination passengers, and transfer passengers. These two types of passengers represent different markets in terms of both geographical boundaries and competing airports. Analysis of Official Airline Guide data, along with the information obtained during the interviews with stakeholders, clearly demonstrate that Schiphol has a potential to exercise its market power on both markets we identified.

Suggested Citation

  • Bilotkach, Volodymyr & Mueller, Juergen, 2012. "Supply side substitutability and potential market power of airports: Case of Amsterdam Schiphol," Utilities Policy, Elsevier, vol. 23(C), pages 5-12.
  • Handle: RePEc:eee:juipol:v:23:y:2012:i:c:p:5-12
    DOI: 10.1016/j.jup.2012.07.005
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    References listed on IDEAS

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    1. Volodymyr Bilotkach & Joseph Clougherty & Juergen Mueller & Anming Zhang, 2012. "Regulation, privatization, and airport charges: panel data evidence from European airports," Journal of Regulatory Economics, Springer, vol. 42(1), pages 73-94, August.
    2. Achim Czerny, 2006. "Price-cap Regulation of Airports: Single-till Versus Dual-till," Journal of Regulatory Economics, Springer, vol. 30(1), pages 85-97, July.
    3. Van Dender, Kurt, 2007. "Determinants of fares and operating revenues at US airports," Journal of Urban Economics, Elsevier, vol. 62(2), pages 317-336, September.
    4. Hangjun Yang & Anming Zhang, 2011. "Price-cap regulation of congested airports," Journal of Regulatory Economics, Springer, vol. 39(3), pages 293-312, June.
    5. Perelman, Sergio & Serebrisky, Tomas, 2010. "Measuring the technical efficiency of airports in Latin America," Policy Research Working Paper Series 5339, The World Bank.
    6. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
    7. Leonardo J. Basso & Anming Zhang, 2008. "Sequential peak-load pricing: the case of airports and airlines," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 1087-1119, August.
    8. David Starkie, 2008. "The Airport Industry in a Competitive Environment: A United Kingdom Perspective," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/15, OECD Publishing.
    9. Oum, Tae Hoon & Yu, Chunyan, 2004. "Measuring airports' operating efficiency: a summary of the 2003 ATRS global airport benchmarking report," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(6), pages 515-532, November.
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    Cited by:

    1. Miller, Benjamin I. & Dewey, James F. & Denslow, David & Miller, Edward B., 2016. "A welfare analysis of subsidies for airports," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 83-90.

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