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Does Airport Regulation Benefit Consumers?

Author

Listed:
  • Cristina Barbot

    (CETE, Faculdade de Economia da Universidade do Porto)

Abstract

Airport regulation is aimed to impose price caps or other schemes on services supplied by airports to airlines that use them. However, it is not clear that regulation benefits the final consumers, the passengers. In the context of a very simple model, this paper finds out that this doesn’t always happen, and that passengers may be worse off with price capping than in an unregulated equilibrium. Besides, the paper provides an insight of the results of other regulation approaches (other than price caps) that have been suggested for airports.

Suggested Citation

  • Cristina Barbot, 2002. "Does Airport Regulation Benefit Consumers?," FEP Working Papers 119, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:119
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp119.pdf
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    References listed on IDEAS

    as
    1. Tirole, Jean, 1986. "Procurement and Renegotiation," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 235-259, April.
    2. Gianni De Fraja & Alberto Iozzi, "undated". "Short Term and Long Term Effects of Price Cap Regulation," Discussion Papers 00/61, Department of Economics, University of York.
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    Cited by:

    1. Cristina Barbot, 2004. "Low cost carriers, secondary airports and State aid: an economic assessment of the Charleroi affair," FEP Working Papers 159, Universidade do Porto, Faculdade de Economia do Porto.
    2. Filipe J. Sousa & Luis M. de Castro, 2004. "The strategic relevance of business relationships: a preliminary assessment," FEP Working Papers 163, Universidade do Porto, Faculdade de Economia do Porto.
    3. Rosa Forte, 2004. "The relationship between foreign direct investment and international trade. Substitution or complementarity? A survey," FEP Working Papers 140, Universidade do Porto, Faculdade de Economia do Porto.
    4. Rui Henrique Alves, 2004. "Europe: Looking for a New Model," FEP Working Papers 154, Universidade do Porto, Faculdade de Economia do Porto.
    5. Maria do Rosario Correia & Scott C. Linn & Andrew Marshall, 2004. "An Empirical Investigation of Debt Contract Design: The Determinants of the Choice of Debt Terms in Eurobond Issues," FEP Working Papers 148, Universidade do Porto, Faculdade de Economia do Porto.

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