How (Grandfathered) Slots Can Be a First-best Policy for a Congested Airport Whereas Prices Cannot

Hao Lang, Achim I. Czerny

Research output: Journal article publicationJournal articleAcademic researchpeer-review

3 Citations (Scopus)

Abstract

This study considers a stylised airport network, designed to identify clearly the role of local and nonlocal passengers for the assessment of local welfare-maximising airport congestion policies. The analysis shows that, in our framework, the local welfare-maximising slot quantity can coincide with the first-best outcome, whereas this is impossible in the case of pricing policy. Whether the outcomes coincide in the case of slot policy depends on the shares of locals and non-locals in terms of inframarginal and marginal passengers.

Original languageEnglish
Pages (from-to)217-242
Number of pages26
JournalJournal of Transport Economics and Policy
Volume56
Issue number2
Publication statusPublished - 1 Apr 2022

ASJC Scopus subject areas

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

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