Airport congestion pricing and passenger types

Achim Ingo Czerny, Anming Zhang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

40 Citations (Scopus)

Abstract

We consider a public and congested airport served by airlines that may have market power, and two types of travelers with different relative values of time. We find that in the absence of passenger-type-based price discrimination by airlines, it can be useful to increase the airport charge so as to protect passengers with a great relative time value from excessive congestion caused by passengers with a low relative time value. As a result, the socially efficient airport charge can be substantially higher than what we learned from the recent literature on congestion pricing with non-atomistic airlines.
Original languageEnglish
Pages (from-to)595-604
Number of pages10
JournalTransportation Research Part B: Methodological
Volume45
Issue number3
DOIs
Publication statusPublished - 1 Jan 2011
Externally publishedYes

Keywords

  • Airlines
  • Airports
  • Congestion
  • Passenger types
  • Pricing
  • Value of time

ASJC Scopus subject areas

  • Transportation
  • Management Science and Operations Research

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