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.
|Number of pages||19|
|Journal||Journal of Transport Economics and Policy|
|Publication status||Published - 1 Jan 2013|
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law