This paper considers networks with two or three complementary airports. In each case, two airports independently choose between slot and pricing policies, where slot policies involve grandfather rules. We show that equilibrium policies involve slots when airport profits do not matter and pricing...

This study considers a stylized airport network designed to clearly identify the role of local and non-local passengers for the assessment of local welfare-maximizing airport congestion policies. The analysis shows that the local welfare-maximizing slot quantity can coincide with the first-best...

Many passengers can choose among various destinations for their flight trips (for instance, a leisure trip from Asia to Europe or the US). A major feature of the present study is to incorporate substitute air services for origin-destination passengers into the analysis of equilibrium airport...

The aviation industry doubles market size every 15 years. This growth is partly determined by changes in government regulations. The present chapter describes how the privatization and deregulation of airline markets has contributed to this development. First, we describe the historic...

Consider a principal who assigns a job with two tasks to two identical agents. Monitoring the agents' efforts is costly, therefore the principal rewards agents based on their (noisy) relative outputs. This paper addresses the question whether the principal should evaluate the outputs in each...