No need to regulate airports with predominantly non-aeronautical revenues
Kratzsch U, Sieg G
Abstract
This paper analyzes a profit-maximizing private airport with market power in providing aeronautical services. Our model implies that airports with ample capacity may voluntarily abstain from abusing their market power if non-aeronautical revenues are airports’ main source of income. In this case, a price regulation that is confined to the aviation business will be unnecessary from a welfare point of view.
Keywords
airport regulation; airport pricing; airline-airport strategic interaction; dual-till; non-aviation revenue
Publication type
Research article (journal)
Peer reviewed
Yes
Publication status
Published
Year
2012
Journal
European Transport - Trasporti Europei
Volume
52
Issue
52
Start page
1
End page
9
Language
English
ISSN
1825-3997
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