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 language | English |
|---|---|
| Pages (from-to) | 71-89 |
| Number of pages | 19 |
| Journal | Journal of Transport Economics and Policy |
| Volume | 47 |
| Issue number | 1 |
| Publication status | Published - 1 Jan 2013 |
| Externally published | Yes |
ASJC Scopus subject areas
- Transportation
- Economics and Econometrics
- Management, Monitoring, Policy and Law
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