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

  • Daniel Strobach

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    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.

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    File URL: http://www.uni-hohenheim.de/RePEc/hoh/papers/272.pdf
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    Paper provided by Department of Economics, University of Hohenheim, Germany in its series Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim with number 272/2006.

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    Length: 27 pages
    Date of creation: 2006
    Date of revision:
    Handle: RePEc:hoh:hohdip:272
    Contact details of provider: Postal: D-70593 Stuttgart
    Phone: 0711/459-22992
    Fax: 0711/459-22993
    Web page: http://www.uni-hohenheim.de/institution/institut-fuer-economics-11
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    1. Huck, Steffen & Knoblauch, Vicki & Muller, Wieland, 2003. "On the profitability of collusion in location games," Journal of Urban Economics, Elsevier, vol. 54(3), pages 499-510, November.
    2. Hess, Stephane & Polak, John W., 2005. "Mixed logit modelling of airport choice in multi-airport regions," Journal of Air Transport Management, Elsevier, vol. 11(2), pages 59-68.
    3. Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
    4. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Access to and competition between airports: a case study for the San Francisco Bay area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(1), pages 71-83, January.
    5. Eaton, B Curtis & Lipsey, Richard G, 1975. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," Review of Economic Studies, Wiley Blackwell, vol. 42(1), pages 27-49, January.
    6. repec:cup:cbooks:9780521305525 is not listed on IDEAS
    7. Eaton, B Curtis & Lipsey, Richard G, 1976. "The Non-Uniqueness of Equilibrium in the Loschian Location Model," American Economic Review, American Economic Association, vol. 66(1), pages 71-93, March.
    8. Eric Pels & Peter Nijkamp & Piet Rietveld, 1998. "Access to airports : A case study for the San Francisco Bay Area," ERSA conference papers ersa98p199, European Regional Science Association.
    9. Knoblauch, Vicki, 2002. "An Easy Proof That a Square Lattice Is an Equilibrium for Spatial Competition in the Plane," Journal of Urban Economics, Elsevier, vol. 51(1), pages 46-53, January.
    10. Aoyagi, Masaki & Okabe, Atsuyuki, 1993. "Spatial competition of firms in a two-dimensional bounded market," Regional Science and Urban Economics, Elsevier, vol. 23(2), pages 259-289, April.
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