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Evaluating the potential impact of alternative airport pricing approaches on social welfare

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  • Lu, Ching-Chyuan
  • Pagliari, Romano I.

Abstract

Existing approaches to the economic regulation of airports are currently under (or just completed) review in the UK and New Zealand. One of the most critical issues facing policy-makers is whether it is preferable to adopt a single-till or dual-till approach. This paper aims to analyse the potential loss of social welfare as a result of adopting a single/dual-till approach in three airport pricing scenarios. The results show that the dual-till approach is desirable when aeronautical capacity is fully utilised or already over-utilised, while the single-till approach is preferable where excess capacity exists.

Suggested Citation

  • Lu, Ching-Chyuan & Pagliari, Romano I., 2004. "Evaluating the potential impact of alternative airport pricing approaches on social welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(1), pages 1-17, January.
    • Handle: RePEc:eee:transe:v:40:y:2004:i:1:p:1-17
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    Citations

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    Cited by:

    1. Basso, Leonardo J. & Zhang, Anming, 2008. "On the relationship between airport pricing models," Transportation Research Part B: Methodological, Elsevier, vol. 42(9), pages 725-735, November.
    2. Voltes-Dorta, Augusto & Lei, Zheng, 2013. "The impact of airline differentiation on marginal cost pricing at UK airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 72-88.
    3. Czerny, Achim I., 2004. "Price-cap regulation of airports: single-till versus dual-till," Discussion Papers 2004/13, Technische Universität Berlin, School of Economics and Management.
    4. Czerny, Achim I. & Zhang, Hanxiang, 2020. "Rivalry between airport ancillary and city-center supplies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    5. Núñez-Sánchez, Ramón & Hidalgo-Gallego, Soraya & Martínez-San Román, Valeriano, 2020. "Airport charges and marginal costs for Spanish airports before the process of partial privatization," Transport Policy, Elsevier, vol. 99(C), pages 240-250.
    6. Hangjun Yang & Anming Zhang, 2011. "Price-cap regulation of congested airports," Journal of Regulatory Economics, Springer, vol. 39(3), pages 293-312, June.
    7. Marques, Rui Cunha & Brochado, Ana, 2008. "Airport regulation in Europe: Is there need for a European Observatory?," Transport Policy, Elsevier, vol. 15(3), pages 163-172, May.
    8. Martimort, David & Pommey, Guillaume & Pouyet, Jerome, 2022. "Optimal regulation design of airports: Investment incentives and impact of commercial services," Transportation Research Part B: Methodological, Elsevier, vol. 164(C), pages 25-44.
    9. repec:ebl:ecbull:v:12:y:2008:i:8:p:1-7 is not listed on IDEAS
    10. Karanki, Fecri, 2024. "Cross-subsidization and U.S. airports," Transport Policy, Elsevier, vol. 145(C), pages 150-160.
    11. Achim I. Czerny, 2009. "Airport Pricing and Concession Revenues," WHU Working Paper Series - Economics Group 09-05, WHU - Otto Beisheim School of Management.
    12. David Martimort & Guillaume Pommey & Jerome Pouyet, 2021. "How to Regulate Airports?," Working Papers hal-03328394, HAL.
    13. Karanki, Fecri & Lim, Siew Hoon & Choi, Bong Jin, 2020. "The determinants of aeronautical charges of U.S. airports: A spatial analysis," Journal of Air Transport Management, Elsevier, vol. 86(C).
    14. Achim I. Czerny, 2012. "Public Versus Private Airport Behavior When Concession Revenues Exist," WHU Working Paper Series - Economics Group 12-01, WHU - Otto Beisheim School of Management.
    15. Czerny, Achim I., 2013. "Public versus private airport behavior when concession revenues exist," Economics of Transportation, Elsevier, vol. 2(1), pages 38-46.
    16. Evangelinos, Christos & Püschel, Ronny & Goldhahn, Susan, 2011. "Inverting the regulatory rules? Optimizing airport regulation to account for commercial revenues," Discussion Papers 1/2011, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    17. Germá Bel & Xavier Fageda, 2009. "Factors Explaining Charges in European Airports: Competition, Market Size, Private Ownership and Regulation," Working Papers 2009-31, FEDEA.
    18. Kidokoro, Yukihiro & Lin, Ming Hsin & Zhang, Anming, 2016. "A general-equilibrium analysis of airport pricing, capacity, and regulation," Journal of Urban Economics, Elsevier, vol. 96(C), pages 142-155.

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