Price vs. quantity-based approaches to airport congestion management
This paper analyzes price and quantity-based approaches to management of airport congestion, using a model where airlines are asymmetric and internalize congestion. Under these circumstances, optimal congestion tolls are differentiated across carriers, and a uniformity requirement on airport charges (as occurs when slots are sold or tolls are uniform) distorts carrier flight choices. Flight volumes tend to be too low for large carriers and too high for small carriers. But quantity-based regimes, where the airport authority allocates a fixed number of slots via free distribution or an auction, lead carriers to treat total flight volume (and thus congestion) as fixed, and this difference generates an efficient outcome as long as the number of slots is optimally chosen.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hahn, Robert W, 1984.
"Market Power and Transferable Property Rights,"
The Quarterly Journal of Economics,
MIT Press, vol. 99(4), pages 753-65, November.
- Brueckner, Jan K. & Verhoef, Erik T., 2010.
"Manipulable congestion tolls,"
Journal of Urban Economics,
Elsevier, vol. 67(3), pages 315-321, May.
- Oum, Tae Hoon & Zhang, Yimin, 1990. "Airport pricing : Congestion tolls, lumpy investment, and cost recovery," Journal of Public Economics, Elsevier, vol. 43(3), pages 353-374, December.
- Flores-Fillol, Ricardo, 2009. "Congested hubs," Working Papers 2072/15844, Universitat Rovira i Virgili, Department of Economics.
- Joseph I Daniel & Katherine Thomas Harback, 2008. "Pricing the major hub airports," Working Papers 08-13, University of Delaware, Department of Economics.
- repec:dgr:uvatin:20090009 is not listed on IDEAS
- W. Tom Whalen & Dennis W. Carlton & Ken Heyer & Oliver Richard, 2007.
"Proposal For A Market-Based Solution to Airport Delays,"
EAG Competition Advocacy Papers
200714, Department of Justice, Antitrust Division.
- W. Tom Whalen & Dennis W. Carlton & Ken Heyer & Oliver Richard, 2007. "Proposal For A Market-Based Solution to Airport Delays," EAG Discussions Papers 200714, Department of Justice, Antitrust Division.
- M. L. Weitzman, 1973.
"Prices vs. Quantities,"
106, Massachusetts Institute of Technology (MIT), Department of Economics.
- Braid, Ralph M., 1996. "Peak-Load Pricing of a Transportation Route with an Unpriced Substitute," Journal of Urban Economics, Elsevier, vol. 40(2), pages 179-197, September.
- Johnson, Tracy & Savage, Ian, 2006. "Departure delays, the pricing of congestion, and expansion proposals at Chicago Oâ€™Hare Airport," Journal of Air Transport Management, Elsevier, vol. 12(4), pages 182-190.
- Zhang, Anming & Zhang, Yimin, 2006. "Airport capacity and congestion when carriers have market power," Journal of Urban Economics, Elsevier, vol. 60(2), pages 229-247, September.
- Steven A. Morrison & Clifford Winston, 2007. "Another Look at Airport Congestion Pricing," American Economic Review, American Economic Association, vol. 97(5), pages 1970-1977, December.
- Brueckner, Jan K., 2005.
"Internalization of airport congestion: A network analysis,"
International Journal of Industrial Organization,
Elsevier, vol. 23(7-8), pages 599-614, September.
- Jan K. Brueckner, 2002. "Internalization of Airport Congestion: A Network Analysis," CESifo Working Paper Series 756, CESifo Group Munich.
- Roberto Burguet, 2000.
"Auction theory: a guided tour,"
Fundación SEPI, vol. 24(1), pages 3-50, January.
- Lawrence M. Ausubel & Peter Cramton, 1995. "Demand Reduction and Inefficiency in Multi-Unit Auctions," Papers of Peter Cramton 98wpdr, University of Maryland, Department of Economics - Peter Cramton, revised 22 Jul 2002.
- Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
- Brueckner, Jan K. & Van Dender, Kurt, 2008.
"Atomistic congestion tolls at concentrated airports? Seeking a unified view in the internalization debate,"
Journal of Urban Economics,
Elsevier, vol. 64(2), pages 288-295, September.
- Jan K. Brueckner & Kurt Van Dender, 2007. "Atomistic Congestion Tolls at Concentrated Airports? Seeking a Unified View in the Internalization Debate," CESifo Working Paper Series 2033, CESifo Group Munich.
- Daniel, Joseph I. & Harback, Katherine Thomas, 2008. "(When) Do hub airlines internalize their self-imposed congestion delays?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 583-612, March.
- Forbes, Silke J., 2008. "The effect of air traffic delays on airline prices," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1218-1232, September.
- Basso, Leonardo J. & Zhang, Anming, 2007. "Congestible facility rivalry in vertical structures," Journal of Urban Economics, Elsevier, vol. 61(2), pages 218-237, March.
- Daniel, Joseph I, 1995. "Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues," Econometrica, Econometric Society, vol. 63(2), pages 327-70, March.
- Pels, Eric & Verhoef, Erik T., 2004. "The economics of airport congestion pricing," Journal of Urban Economics, Elsevier, vol. 55(2), pages 257-277, March.
- Rupp, Nicholas G., 2009. "Do carriers internalize congestion costs? Empirical evidence on the internalization question," Journal of Urban Economics, Elsevier, vol. 65(1), pages 24-37, January.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:93:y:2009:i:5-6:p:681-690. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.