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congestion while also shortening a connecting passenger's layover time. When the passenger's cost per unit of layover time rises … discrete spatial model, where flights congest one another only if they operate in the same discrete period, makes this layover …: the carriers concentrate their flights in different periods when the layover cost is high and deconcentrate them otherwise …
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congestion while also shortening a connecting passenger's layover time. When the passenger's cost per unit of layover time rises … discrete spatial model, where flights congest one another only if they operate in the same discrete period, makes this layover …: the carriers concentrate their flights in different periods when the layover cost is high and deconcentrate them otherwise …
Persistent link: https://www.econbiz.de/10013014357
This paper studies the regulation of an airline duopoly on a congested airport. Regulation should then address two market failures: uninternalized congestion, and overpricing due to market power. We find that first-best charges are differentiated over airlines if asymmetric, and completely drive...
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