I study delays and congestion patterns in U.S. hub airports during periods of high flight volume. I find that these … delays. These results lend support to recent theoretical work on congestion, implying that hub-airlines take into account the … impact of their scheduling decisions on the congestion that they bear. The results may suggest that congestion management …

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 … congestion prices equal to the value of marginal travel delays a non-optimal response. This paper develops a model of airport …

literature, we combine a dynamic (bottleneck) model of congestion and a vertical structure model that explicitly considers the … congestion toll that is derived for fully atomistic carriers to both leader and fringe yields the first-best outcome. This holds … regardless of the leader's internalization of congestion in the unregulated equilibrium, and regardless of the assumed demand …

dominated by a single firm. Unlike much of the previous literature, we combine a dynamic (bottleneck) model of congestion and a … interacts with a competitive fringe, charging the congestion toll that is derived for fully atomistic carriers to both leader … and fringe yields the first-best outcome. This holds regardless of the leader's internalization of congestion in the …

presence of congestion externalities, in addition to correct their pricing. We account for passenger benefits from increased …