IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Airline deregulation and external costs: a welfare analysis

  • Schipper, Youdi
  • Rietveld, Piet
  • Nijkamp, Peter

The 'market internal' effects of airline deregulation have amply been analysed in the literature. The economic evaluation of this policy change has generally shown favourable outcomes in terms of consumer welfare. These welfare effects may be termed market internal effects, as they reflect the welfare consequences of transactions that take place in the market. However, aviation typically affects welfare through both market internal and external effects: these external effects usually take the form of external costs resulting from aircraft noise, emission of pollutants and accidents. This is true for both regulated and deregulated markets, but the importance of the external costs relative to the welfare total is likely to differ between regulatory regimes. This article seeks to analyze how the presence of external costs affects the welfare effect of the liberalization of airline markets. As the size of external costs in an airline market is largely determined by the number of landings and take-offs, a spatial competition model that explicitly determines the frequency choice by airlines in symmetric equilibria is the basis of the analysis.

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.

File URL: http://www.sciencedirect.com/science/article/B6V99-482NJ9C-2/2/e6f5d1e7a3675762f98d5ed69442627e
Download Restriction: Full text for ScienceDirect subscribers only

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.

Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

Volume (Year): 37 (2003)
Issue (Month): 8 (September)
Pages: 699-718

as
in new window

Handle: RePEc:eee:transb:v:37:y:2003:i:8:p:699-718
Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description

Order Information: Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
Web: https://shop.elsevier.com/order?id=548&ref=548_01_ooc_1&version=01

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.:

as in new window
  1. Economides, Nicholas, 1989. "Symmetric equilibrium existence and optimality in differentiated product markets," Journal of Economic Theory, Elsevier, vol. 47(1), pages 178-194, February.
  2. Morrison, Steven A & Winston, Clifford, 1990. "The Dynamics of Airline Pricing and Competition," American Economic Review, American Economic Association, vol. 80(2), pages 389-93, May.
  3. Norman, V.D. & Strandenes, S.P., 1990. "Deregulation Of Scandinavian Airlines - A Case Study Of The Oslo-Stockholm Route," Papers 04-90, Norwegian School of Economics and Business Administration-.
  4. Bresnahan, Timothy F, 1987. "Competition and Collusion in the American Automobile Industry: The 1955 Price War," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 457-82, June.
  5. Norman, George & Thisse, Jacques-Francois, 1996. "Product Variety and Welfare under Tough and Soft Pricing Regimes," Economic Journal, Royal Economic Society, vol. 106(434), pages 76-91, January.
  6. Raubitschek, Ruth S, 1987. "A Model of Product Proliferation with Multiproduct Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 35(3), pages 269-79, March.
  7. Panzar, John C, 1979. "Equilibrium and Welfare in Unregulated Airline Markets," American Economic Review, American Economic Association, vol. 69(2), pages 92-95, May.
  8. Giovanni Nero, 1998. "Spatial multiproduct pricing: empirical evidence on intra-European duopoly airline markets," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 465-475.
  9. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
  10. Youdi Schipper & Piet Rietveld & Peter Nijkamp, 2002. "European Airline Reform: An Empirical Welfare Analysis," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(2), pages 189-209, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:37:y:2003:i:8:p:699-718. 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.