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 that overcharges the passengers for congestion delay cost...

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...

This study examines hub-carrier scheduling and hub-airport congestion pricing using a simple hub-spoke network model incorporating both schedule delays and congestion delays. We find that in the short-middle run, where aircraft size is given exogenously, hub-airport congestion tolls are not...

This paper analyzes slot-based approaches to management of airport congestion, using a model where airlines are asymmetric and internalize airport congestion. Under these circumstances, optimal congestion tolls differ across carriers, and since a slot-sale regime (with its uniform slot price)...

This paper investigates the distributional impact of airport congestion pricing on commercial, commuter, miscellaneous, and general aviation. It extends Daniel's (1995) stochastic bottleneck model in three significant directions by allowing for non-homogeneous aircraft operating and time costs,...

This paper explores the interrelations between pricing, capacity choice and financingin transportation networks. It builds on the famous Mohring-Harwitz result on self-financing ofoptimally designed roads under optimal congestion pricing, and specifically investigates itsins and outs in a...

A dynamic 'car-following' extension of the conventional economic model of traffic congestion is presented, which predicts the average cost function for trips in stationary states to be significantly different from the conventional average cost function derived from the speed-flow function. When...

Mohring and Harwitz (1962) showed that, under certain conditions, an optimally designed and priced road would generate user toll revenues just sufficient to cover its capital costs. Several scholars subsequently explored the robustness of that finding. This paper briefly summarizes further...

This paper considers the use of ‘long-run cost functions’ for congested networks in solving second-best network problems, in which capacity and tolls are instruments. We derive analytical results both for general cost and demand functions and for specific functional forms, namely Bureau of...