This paper investigates contracts between airports and airlines, in the context of two competing facilities and three types of agreements. The downstream market consists in a route operated by one leader and n - 1 followers competing a la Stackelberg in each facility. We develop a multistage game where each airport and its dominant airline decide whether to enter into a contract and which one to engage in. We find that the airport and its dominant airline have incentives to collude in each facility. Nevertheless, the equilibrium is not efficient in terms of social welfare: there is a misalignment between private and social incentives. (C) 2012 Elsevier Ltd. All rights reserved.

Vertical relations in the air transport industry: A facility-rivalry game / D'Alfonso, Tiziana; Nastasi, Alberto. - In: TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW. - ISSN 1366-5545. - STAMPA. - 48:5(2012), pp. 993-1008. (Intervento presentato al convegno 12th World Conference on Transport Research (WCTR)/14th World Conference of the Air-Transport-Research-Society (ATRS) tenutosi a Lisbon, PORTUGAL nel JUL 11-15, 2010) [10.1016/j.tre.2012.03.003].

Vertical relations in the air transport industry: A facility-rivalry game

D'ALFONSO, TIZIANA;NASTASI, Alberto
2012

Abstract

This paper investigates contracts between airports and airlines, in the context of two competing facilities and three types of agreements. The downstream market consists in a route operated by one leader and n - 1 followers competing a la Stackelberg in each facility. We develop a multistage game where each airport and its dominant airline decide whether to enter into a contract and which one to engage in. We find that the airport and its dominant airline have incentives to collude in each facility. Nevertheless, the equilibrium is not efficient in terms of social welfare: there is a misalignment between private and social incentives. (C) 2012 Elsevier Ltd. All rights reserved.
2012
airlines competition; airports competition; vertical contracts
01 Pubblicazione su rivista::01a Articolo in rivista
Vertical relations in the air transport industry: A facility-rivalry game / D'Alfonso, Tiziana; Nastasi, Alberto. - In: TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW. - ISSN 1366-5545. - STAMPA. - 48:5(2012), pp. 993-1008. (Intervento presentato al convegno 12th World Conference on Transport Research (WCTR)/14th World Conference of the Air-Transport-Research-Society (ATRS) tenutosi a Lisbon, PORTUGAL nel JUL 11-15, 2010) [10.1016/j.tre.2012.03.003].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/443404
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