Equilibrium Airfares, Frequencies and Airport Taxes in a Multiple Airport Region: An Application of the Nested Logit Demand Model

In this paper a model, based on the nested multinomial logit model, is used to analyze airport competition and airline competition in a multiple airport region. It is shown that if the frequency elasticity of demand is smaller than 1, airfare-frequency and airport tax equilibria exist and are unique.Symmetric equilibria are derived analytically and their properties are discussed. Asymmetric equilibria are obtained numerically, and their properties are discussed.

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Year of publication:	1998
Authors:	Pels, Eric ; Nijkamp, Peter ; Rietveld, Piet
Publisher:	Amsterdam and Rotterdam : Tinbergen Institute
Subject:	Luftverkehr \| Verkehrstarif \| Steuer \| Theorie

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Series:	Tinbergen Institute Discussion Paper ; 98-073/3
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	832260940 [GVK] hdl:10419/85577 [Handle] RePEc:dgr:uvatin:19980073 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010324552