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Airport Congestion and Inefficiency in Slot Allocation
Picard, Pierre M; Tampieri, Alessandro; Wan, Xi
2015
 

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Keywords :
Slot allocation; Airport congestion; Vertical differentiation
Abstract :
[en] This paper analyzes optimal slot allocation in the presence of airport congestion. We model peak and offpeak slots as vertically differentiated products, and congestion limits the number of peak slots that the airport can allocate. Inefficiency emerges when the airport does not exploit all its slots. We show that for a private airport, inefficiency may arise if the airport is not too congested and the per-passenger fee is small enough, while with a public airport it does not emerge. Furthermore the airport, irrespective of its ownership, tends to give different slots to flights with same destination if the underlying market is a duopoly, and a single slot if the underlying market is served by a monopoly.
Disciplines :
International economics
Author, co-author :
Picard, Pierre M ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Tampieri, Alessandro ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Wan, Xi
Language :
English
Title :
Airport Congestion and Inefficiency in Slot Allocation
Publication date :
August 2015
Number of pages :
39
Available on ORBilu :
since 04 March 2016

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