IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v26y1992i4p307-323.html
   My bibliography  Save this article

Air traffic network equilibrium: Toward frequency, price and slot priority analysis

Author

Listed:
  • Hong, Sungwook
  • Harker, Patrick T.

Abstract

This paper presents a model which is aimed at developing an efficient air traffic system for given demand and airport capacity levels by the proper pricing of landing slots. A computable Nash equilibrium model is used in the context of a two-stage, game-theoretic representation of a market mechanism for slot allocation. A variational inequality formulation is then used to solve this oligopolistic air transport market model. The choice of travellers among competing airlines is represented by a logit model. Two models are proposed for pricing of landing slots: one with an exogenously determined allocation, and the second with an endogenous allocation. Each model derives the flight patterns, ticket prices, routes, and carrier choice for passengers, and landing fees. A small example is included to illustrate the properties of the models.

Suggested Citation

  • Hong, Sungwook & Harker, Patrick T., 1992. "Air traffic network equilibrium: Toward frequency, price and slot priority analysis," Transportation Research Part B: Methodological, Elsevier, vol. 26(4), pages 307-323, August.
  • Handle: RePEc:eee:transb:v:26:y:1992:i:4:p:307-323
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0191-2615(92)90040-4
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kita, Hideyuki & Koike, Atsushi & Tanimoto, Keishi, 2005. "Air Service Development of Local Airports and its Influence on the Formation of Aviation Networks," Research in Transportation Economics, Elsevier, vol. 13(1), pages 233-249, January.
    2. Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2005. "Network competition—the coexistence of hub-and-spoke and point-to-point systems," Journal of Air Transport Management, Elsevier, vol. 11(5), pages 328-334.
    3. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Fu, Xiaowen, 2010. "Optimal route allocation in a liberalizing airline market," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 886-902, August.
    4. Marco Alderighi & Alessandro Cento & Peter Nijkamp & Piet Rietveld, 2005. "Network competition - the co-existence of hub-and-spoke and point-to-point," ERSA conference papers ersa05p703, European Regional Science Association.
    5. Adler, Nicole & Pels, Eric & Nash, Chris, 2010. "High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 812-833, August.
    6. Saraswati, Batari & Hanaoka, Shinya, 2014. "Airport–airline cooperation under commercial revenue sharing agreements: A network approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 17-33.
    7. Adler, Nicole & Smilowitz, Karen, 2007. "Hub-and-spoke network alliances and mergers: Price-location competition in the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 394-409, May.
    8. Marti­n, Juan Carlos & Román, Concepción, 2003. "Hub location in the South-Atlantic airline market: A spatial competition game," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(10), pages 865-888, December.
    9. Sheng, Dian & Li, Zhi-Chun & Xiao, Yi-bin & Fu, Xiaowen, 2015. "Slot auction in an airport network with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 79-100.
    10. Bernardes Real, Luiza & O'Kelly, Morton & de Miranda, Gilberto & Saraiva de Camargo, Ricardo, 2018. "The gateway hub location problem," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 95-112.
    11. Langner, Sabine J, 1995. "Contractual aspects of transacting in slots in the United States," Journal of Air Transport Management, Elsevier, vol. 2(3), pages 151-161.
    12. Adler, Nicole, 2001. "Competition in a deregulated air transportation market," European Journal of Operational Research, Elsevier, vol. 129(2), pages 337-345, March.
    13. Nakagawa, Dai & Aoyama, Yoshitaka & Ito, Tadashi & Nishizawa, Hiroyuki, 2005. "Assessment of passenger benefits brought about by international airport projects," Transport Policy, Elsevier, vol. 12(6), pages 512-524, November.
    14. Wang, Fan & Zhuo, Xiaopo & Niu, Baozhuang, 2017. "Strategic entry to regional air cargo market under joint competition of demand and promised delivery time," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 317-336.
    15. Nicole Adler, 2005. "Hub-Spoke Network Choice Under Competition with an Application to Western Europe," Transportation Science, INFORMS, vol. 39(1), pages 58-72, February.
    16. Park, Yongha & O'Kelly, Morton E., 2018. "Examination of cost-efficient aircraft fleets using empirical operation data in US aviation markets," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 224-234.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:26:y:1992:i:4:p:307-323. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.