Grandfather rights in the market for airport slots
Grandfather rights are currently used in the European Union to allocate airport slots. This article shows that airports prefer such a use-it-or-lose-it rule to unconditional property rights. Assuming that there are informational asymmetries between airports and air carriers because air carriers have better information on passenger demand, the use-it-or-lose-it rule increases slot use when demand for air transport is low. Airport profits increase and those of the air carriers, together with social welfare, decrease. The profit-maximizing slot-use ratio is less than one.
Volume (Year): 44 (2010)
Issue (Month): 1 (January)
|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|
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.:
- Button, Kenneth, 2005. "A simple analysis of the rent seeking of airlines, airports and politicians," Transport Policy, Elsevier, vol. 12(1), pages 47-56, January.
- Abeyratne, Ruwantissa I.R., 2000. "Management of airport congestion through slot allocation," Journal of Air Transport Management, Elsevier, vol. 6(1), pages 29-41.
- Jan K. Brueckner & Raquel Girvin, 2006.
"Airport Noise Regulation, Airline Service Quality, and Social Welfare,"
CESifo Working Paper Series
1820, CESifo Group Munich.
- Brueckner, Jan K. & Girvin, Raquel, 2008. "Airport noise regulation, airline service quality, and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 42(1), pages 19-37, January.
- Jan K. Brueckner & Raquel Girvin, 2006. "Airport Noise Regulation, Airline Service Quality, and Social Welfare," Working Papers 060706, University of California-Irvine, Department of Economics.
- Pels, Eric & Verhoef, Erik T., 2004.
"The economics of airport congestion pricing,"
Journal of Urban Economics,
Elsevier, vol. 55(2), pages 257-277, March.
- Batool, Irem & Sieg, Gernot, 2009.
"Bread, peace and the attrition of power: Economic events and German election results,"
Economics Department Working Paper Series
3, Technische Universität Braunschweig, Economics Department.
- Irem Batool & Gernot Sieg, 2009. "Bread and the attrition of power: Economic events and German election results," Public Choice, Springer, vol. 141(1), pages 151-165, October.
- 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.
- Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
- Starkie, David, 1998. "Allocating airport slots: a role for the market?," Journal of Air Transport Management, Elsevier, vol. 4(2), pages 111-116.
- Barbot, Cristina, 2004. "Economic effects of re-allocating airports slots: a vertical differentiation approach," Journal of Air Transport Management, Elsevier, vol. 10(5), pages 333-343.
- Itai Sened & William H. Riker, 1996. "Common Property and Private Property: The Case of Air Slots," Journal of Theoretical Politics, , vol. 8(4), pages 427-447, October.
- Ian Jones & Ivan Viehoff & Phillipa Marks, 1993. "The economics of airport slots," Fiscal Studies, Institute for Fiscal Studies, vol. 14(4), pages 37-57, November.
When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:44:y:2010:i:1:p:29-37. 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 references are entirely missing, you can add them using this form.