We study airport pricing with aeronautical and concession activities, incorporating a positive relationship between delay and consumption of concession goods, and the effect of passenger types. We assume that as congestion increases, dwell time increases and the money spent in concession activities and we find: (i) there is a downward correction on the congestion toll due to the positive externality of delay; (ii) the component relevant to the per-passenger benefit from concessions may be a mark-up depending on delay and the passengers' values of time. Furthermore, a welfare-maximising airport may have more incentives to induce congestion than a profit-maximising airport.

Airport pricing, concession revenues and passenger types / D'Alfonso, Tiziana; Changmin, Jiang; Yulai, Wan. - In: JOURNAL OF TRANSPORT ECONOMICS AND POLICY. - ISSN 0022-5258. - ELETTRONICO. - 47:1(2013), pp. 71-89.

Airport pricing, concession revenues and passenger types

D'ALFONSO, TIZIANA;
2013

Abstract

We study airport pricing with aeronautical and concession activities, incorporating a positive relationship between delay and consumption of concession goods, and the effect of passenger types. We assume that as congestion increases, dwell time increases and the money spent in concession activities and we find: (i) there is a downward correction on the congestion toll due to the positive externality of delay; (ii) the component relevant to the per-passenger benefit from concessions may be a mark-up depending on delay and the passengers' values of time. Furthermore, a welfare-maximising airport may have more incentives to induce congestion than a profit-maximising airport.
2013
01 Pubblicazione su rivista::01a Articolo in rivista
Airport pricing, concession revenues and passenger types / D'Alfonso, Tiziana; Changmin, Jiang; Yulai, Wan. - In: JOURNAL OF TRANSPORT ECONOMICS AND POLICY. - ISSN 0022-5258. - ELETTRONICO. - 47:1(2013), pp. 71-89.
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