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This article investigates airline pricing and airport congestion charges in hub-spoke networks. When a public hub … airport and two public spoke (local) airports independently levy their charges, airlines will eventually set a ticket price …
Persistent link: https://www.econbiz.de/10013119810
A number of jurisdictions are considering imposing price caps on the interchange fees that card issuers receive from merchant acquirers when cardholders pay with their cards. Several have already done so. This paper examines the net impact of these price caps on consumers. The economics of...
Persistent link: https://www.econbiz.de/10013122900
If an intermediary offers sellers a platform to reach consumers, he may face a hold-up problem: sellers suspect that the intermediary will enter their respective market, competing with them. As sellers fear that they cannot recoup their sunk costs of entry, they do not join the platform. Hence,...
Persistent link: https://www.econbiz.de/10013088269
This paper investigates optimal airport pricing when airlines provide imperfect substitutes products, and make decisions on capacity, scheduling and pricing. We show that the first-best toll per flight may be higher than the simple market-shares formula that were recently derived for Cournot...
Persistent link: https://www.econbiz.de/10013091922
The provision of retail payment services is complex with many participants engaging in a series of interrelated bilateral transactions and subject to large economies of scale and scope along with strong adoption, usage and network externalities. This makes sound public policy difficult. We focus...
Persistent link: https://www.econbiz.de/10013113006
This paper studies the aggregate and distributional implications of introducing tuition fees for public education services into a tax system with income and consumption taxes. The setup is a neoclassical growth model where agents differ in capital holdings. We show that the introduction of...
Persistent link: https://www.econbiz.de/10012985448
When firms' shrouding of charges, as in Gabaix and Laibson (2006), meets with consumers' salient thinking, as in … quality beyond what would be cost efficient. As more intense shopping leads to a greater “pass through” of shrouded charges … policy. While in our model all consumers are potential victims of salient thinking and shrouded charges, salient thinking …
Persistent link: https://www.econbiz.de/10012992314