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 out the least efficient airline from the market. This is not …

airline industry. The main results indicate a highly significant effect of airport congestion self-internalization in parallel … the local and global effects of competition, with a unifying framework to test the hypotheses of 1. airport congestion … the incentives of carriers to maintain on-time performance. We consider both the route and the airport levels to inspect …

congestion prices equal to the value of marginal travel delays a non-optimal response. This paper develops a model of airport …Conventional economic wisdom suggests that congestion pricing would be an appropriate response to cope with the growing … congestion levels currently experienced at many airports. Several characteristics of aviation markets, however, may make naive …