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Auctioning airport slots (?)

Author

Listed:
  • Nicolas Gruyer

    () (LEEA (air transport economics laboratory), ENAC)

  • Nathalie Lenoir

    () (LEEA (air transport economics laboratory), ENAC)

Abstract

The current allocation of slots on congested European airports constitutes an obstacle to the effective liberalisation of air transportation undertaken in Europe. With a view to favouring efficient slot utilisation and competition, as is the goal of the European commission, we propose to use a market mechanism, based on temporary utilisation licences. In order to allocate those licences, we propose and describe an iterated combinatorial auction mechanism where a percentage of licences would be reallocated each season. A secondary market would also be set up in order to reallocate slots during a season. Since a combinatorial auction involve a complex optimisation procedure, we describe how it can be made to work in the case of auctions.

Suggested Citation

  • Nicolas Gruyer & Nathalie Lenoir, 2003. "Auctioning airport slots (?)," Economics Working Papers 01, LEEA (air transport economics laboratory), ENAC (french national civil aviation school).
  • Handle: RePEc:enc:abcdef:auction1
    Note: Type of Document - pdf; pages: 18.
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    References listed on IDEAS

    as
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    3. Paul Milgrom, 2000. "Putting Auction Theory to Work: The Simultaneous Ascending Auction," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 245-272, April.
    4. Peter Cramton, 2002. "Spectrum Auctions," Papers of Peter Cramton 01hte, University of Maryland, Department of Economics - Peter Cramton, revised 16 Jul 2001.
    5. R. Preston McAfee & John McMillan, 1996. "Analyzing the Airwaves Auction," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 159-175, Winter.
    6. Milgrom, Paul R & Weber, Robert J, 1982. "A Theory of Auctions and Competitive Bidding," Econometrica, Econometric Society, vol. 50(5), pages 1089-1122, September.
    7. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071, August.
    8. John Ledyard & Charles Noussair & David Porter, 1996. "The allocation of a shared resource within an organization," Review of Economic Design, Springer;Society for Economic Design, vol. 2(1), pages 163-192, December.
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    14. S.J. Rassenti & V.L. Smith & R.L. Bulfin, 1982. "A Combinatorial Auction Mechanism for Airport Time Slot Allocation," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 402-417, Autumn.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    slots; airports; licence; auction; combinatorial;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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