This paper investigates the effects of concession revenue sharing between an airport and its airlines. It is found that the degree of revenue sharing will be affected by how airlines' services are related to each other (complements, independent, or substitutes). In particular, when carriers...

This paper investigates the effects of competition between air transport and high-speed rail (HSR). While airlines are assumed to maximize profit, HSR may maximize a weighted sum of profit and social welfare. We show that both airfare and HSR fare fall as the weight of welfare in the HSR’s...

This paper investigates the impact of economic regulation on transport infrastructure capacity and service quality. We find that for a monopoly profit-maximising infrastructure provider, its capacity is the largest under cost-based regulation, which is followed by rate-of-return regulation, no...

This paper first measures the degree of Chinese airlines’ market power by using Lerner index, and then investigates its determinants. Our empirical results show that a certain degree of market power exists in the Chinese airline industry. Of the three dominant carriers, Air China exhibits the...