Airport pricing, concession revenues and passenger types

Tiziana D'Alfonso, Changmin Jiang, Yulai Wan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

35 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)71-89
Number of pages19
JournalJournal of Transport Economics and Policy
Volume47
Issue number1
Publication statusPublished - 1 Jan 2013
Externally publishedYes

ASJC Scopus subject areas

  • Transportation
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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