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Transportation Infrastructure Management One- and Two-sided Market Approaches

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  • David Gillen
  • Benny Mantin

Abstract

We study a profit-maximising airport under one- and two-sided market structures. Our analysis reveals that the airport management will choose the welfare maximising price structure based on market characteristics and demand complementarity. We find that, in contrast with the traditional literature, airports in low- or high-density markets will exercise market power, while over a broad range of market densities the airport sets prices to incentivise airlines to expand its services, and both airport and airlines realise strictly positive profits. © 2013 LSE and the University of Bath

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  • David Gillen & Benny Mantin, 2013. "Transportation Infrastructure Management One- and Two-sided Market Approaches," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 207-227, May.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:2:p:207-227
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    Cited by:

    1. Takebayashi, Mikio & Onishi, Masamitsu, 2018. "Managing reliever gateway airports with high-speed rail network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 133-146.
    2. Mizutani, Fumitoshi, 2024. "Empirical analysis of the factors behind rail infrastructure investment," Transport Policy, Elsevier, vol. 150(C), pages 244-254.
    3. Takebayashi, Mikio, 2018. "Managing airport charges under the multiple hub network with high speed rail: Considering capacity and gateway function," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 108-123.
    4. Kenneth Button, 2020. "Studying the empirical implications of the liberalization of airport markets," Competition and Regulation in Network Industries, , vol. 21(3), pages 223-243, September.
    5. Tavalaei, M. Mahdi, 2020. "Waiting time in two-sided platforms: The case of the airport industry," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    6. Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Two-sided platforms in airport privatization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 262-278.

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