Price-cap regulation of airports: Single-till versus dual-till

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76 Citations (Scopus)

Abstract

This paper takes up the debate whether price-cap regulation of airports should take the form of single-till or dual-till regulation. The contribution is to model single- and dual-till regulation, evaluate their welfare implications, and compare them to Ramsey charges. We show that single-till regulation dominates dual-till regulation at non-congested airports with regard to welfare maximization. However, none of them provides an airport with incentives to implement Ramsey charges. A Ramsey optimal price-cap regulation, which achieves this goal, is also presented.
Original languageEnglish
Pages (from-to)85-97
Number of pages13
JournalJournal of Regulatory Economics
Volume30
Issue number1
DOIs
Publication statusPublished - 1 Jul 2006
Externally publishedYes

Keywords

  • Airport
  • Dual-till
  • Price-cap regulation
  • Single-till

ASJC Scopus subject areas

  • Economics and Econometrics

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