This paper analyzes pricing and slot-allocation mechanisms to manage airport capacity when profits are important to an airport, owing to budget constraints or profit maximization. We find that congestion pricing and slot trading/slot auctioning do not lead to the same results. Total traffic is...

We investigate airport peak-load pricing using a vertical structure of airport and airlines. We find that a profit-maximizing airport would charge higher peak and off-peak runway prices and a higher peak/off-peak price differential than a public airport. Consequently, airport privatization would...

This paper investigates the effects of congestion pricing implemented at a gateway (port or airport) on its hinterland's optimal road pricing, road congestion and social welfare. We find that if the gateway maximises the joint profit of itself and its oligopoly carriers, its charge will rise,...

Frequent-flier plans (FFPs) may be the most famous of customer loyalty programs, and there are similar schemes in other industries. We present a theory that models FFPs as efforts to exploit the agency relationship between employers (who pay for tickets) and employees (who book travel). FFPs...

Transport network expansions have usually been analysed calculating returns to scale with variable network size (RTS), which has been shown to suffer from a number of shortcomings because, in the end, it attempts to capture as a scale property something that in fact is related with scope, namely...

Bringing together insights and perspectives from close to 70 of the world’s leading experts in the field, this timely Handbook provides an up-to-date guide to the most recent and state-of-the-art advances in transport economics. The comprehensive coverage includes topics such as the...

This paper shows technically that economies of transport network expansion should be viewed through the concept of economies of scope rather than through the concept of economies of scale. The basic technological dimensions that are specific to transport production are identified. The framework...