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Congestion pricing vs. slot constraints to airport networks

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  • Czerny, Achim I.

Abstract

Congestion has become a problem for many airports throughout the world. Two different policy options to control congestion are analyzed in this paper: slot constraints and congestion pricing. In particular, our model takes into account that the airline industry is characterized by significant demand uncertainty. Furthermore, due to the network character of the airline industry, the demand for airport capacities normally is complementary. We show that this favors the use of slot constraints compared to congestion pricing from a social point of view. In contrast, for monopolistic airports, prices as instruments constitute a dominant choice.

Suggested Citation

  • Czerny, Achim I., 2006. "Congestion pricing vs. slot constraints to airport networks," Discussion Papers 2006/3, Technische Universität Berlin, School of Economics and Management.
  • Handle: RePEc:zbw:tubsem:20063
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    File URL: https://www.econstor.eu/bitstream/10419/36438/1/510290531.pdf
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    References listed on IDEAS

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    1. Adar, Zvi & Griffin, James M., 1976. "Uncertainty and the choice of pollution control instruments," Journal of Environmental Economics and Management, Elsevier, vol. 3(3), pages 178-188, October.
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    Cited by:

    1. Jeffrey P. Cohen & Cletus C. Coughlin & Lesli S. Ott, 2009. "Auctions as a vehicle to reduce airport delays and achieve value capture," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 569-588.
    2. Nagy, Benedek, 2012. "A repülőtéri zsúfoltságkezelési módszerek hatékonysága
      [The efficiency of methods to treat crowding in airports]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 74-91.

    More about this item

    Keywords

    Slots; uncertainty; monopolistic airports; regulation;

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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