Airport peak-load pricing revisited: The case of peak and uniform tolls

Achim Ingo Czerny, Anming Zhang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

10 Citations (Scopus)

Abstract

This paper develops a two-period model with peak/off-peak demands that incorporates three types of passengers: (1) passengers who are scheduled for peak departure and depart during the peak period, (2) passengers who are scheduled for peak departure but depart during the off-peak period because of congestion, and (3) passengers who are scheduled for off-peak departure. An increase in peak supply may turn own type-1 passengers into type-2 passengers, which is called self-imposed schedule delay. Our main result is that carriers with market power internalize self-imposed schedule delay costs. The investigation of a uniform-toll regime reveals that the welfare-optimal uniform toll corrects for external schedule delay only if schedule delay cost is sufficiently high.
Original languageEnglish
Pages (from-to)90-101
Number of pages12
JournalEconomics of Transportation
Volume3
Issue number1
DOIs
Publication statusPublished - 1 Jan 2014
Externally publishedYes

Keywords

  • Airports
  • Bottleneck
  • Peak-load pricing
  • Schedule delays
  • Uniform tolls

ASJC Scopus subject areas

  • Transportation
  • Economics, Econometrics and Finance (miscellaneous)

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