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Airport Choice in a Constraint World: Discrete Choice Models and Capacity Constraints

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  • Gelhausen, Marc Christopher

Abstract

The purpose of this paper is to present a new approach to model capacity constraints in discrete choice with at least some capacity-related variables missing, like e.g. the price of a commodity. Airport choice models often do not contain air fares because of measurement difficulties as air fares are often not included in passenger surveys and thus essential information regarding ticket price is lost to the researcher. Since air fares vary more across ticket categories at an airport than a ticket category varies across different airports, air fare related information cannot be reconstructed in many cases by the researcher. However, capacity constraints are becoming increasingly more important and thus including capacity constraints in airport choice models is reasonable. The model approach is based on individual utility maximisation and thus fits into the discrete choice framework. Furthermore, nonlinear programming is employed to find a feasible solution regarding capacity constraints. Thereby, detailed statements on how limited airport capacity changes traveller behaviour with regard to airport choice on the level of individual air travellers and airports are possible. The paper concludes with an empirical example to demonstrate the methodology and show the impact of limited airport capacity on airport choice of air travellers.

Suggested Citation

  • Gelhausen, Marc Christopher, 2008. "Airport Choice in a Constraint World: Discrete Choice Models and Capacity Constraints," MPRA Paper 9675, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:9675
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    File URL: https://mpra.ub.uni-muenchen.de/15999/2/MPRA_paper_15999.pdf
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    References listed on IDEAS

    as
    1. Wei, Wenbin, 2008. "A new approach to quantify the benefit to air travelers resulting from airport capacity expansion," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 47-49.
    2. Wilken, Dieter & Berster, Peter & Gelhausen, Marc Christopher, 2005. "Airport Choice in Germany - New Empirical Evidence of the German Air Traveller Survey 2003," MPRA Paper 5631, University Library of Munich, Germany.
    3. Gelhausen, Marc Christopher & Wilken, Dieter, 2006. "Airport and Access Mode Choice : A Generalized Nested Logit Model Approach," MPRA Paper 4311, University Library of Munich, Germany, revised 2006.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Airport and Access Mode Choice; Capacity Constraints; Choice Behaviour; Discrete Choice; Nonlinear Programming;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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