Propagation of disruptions across networks is a feature of the modern economy. An example of disruption propagation is in airline networks where disruptions, like hurricanes, cause delays which propagate through the network. Modeling the propagation of delays in airlines is difficult due to the...

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...