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Competition between airports with an application to the state of Baden-Württemberg

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  • Daniel Strobach

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Abstract

Classical theories of competition in two-dimensional space mainly deal with the questions of where firms locate in the plane and what shape their market areas will consequently adopt. Out of that develops the construct of catchment areas. As part of long-term infrastructure equipment, an airport can not change location. Once it is chosen and operational, an airport has to compete for passengers and market share on basis of its prevailing catchment areas. Passenger choice determines the shape of an airport’s market and these markets, other than in the presented theories, commonly overlap. On the basis of passengers’ selection criterions, the valuation of an airport’s attraction takes place. The developed procedure is applied to the state of Baden-Württemberg. It paints a picture of airport competition in the German Southwest. In order to get a sharper image, the formed catchment areas are subdivided into zones of different competition intensity.

Suggested Citation

  • Daniel Strobach, 2006. "Competition between airports with an application to the state of Baden-Württemberg," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 272/2006, Department of Economics, University of Hohenheim, Germany.
  • Handle: RePEc:hoh:hohdip:272
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    File URL: http://www.uni-hohenheim.de/RePEc/hoh/papers/272.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Airport; catchment area; spatial competition;

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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