With airport privatization and infrastructure expansion projects taking place in the liberalized European air transport market, airport and airline companies are critically reevaluating their vertical governance structures. This paper analyzes the comparative efficiency of vertical governance...

This paper seeks to review the airport-airline relationship in the light of the growth in the low cost sector, identifying important issues that airport management should consider when negotiating with low cost airlines. Airports have responded to the potential opportunities that have arisen...

Antitrust and regulatory concerns swirl around the payment cards industry, for understandable reasons: It is not atomistic; it has network characteristics; it involves two-sided markets; and its two prominent members - Visa and MasterCard - are network joint ventures of the banks that issue cards...

Ongoing consolidation in the European airline industry poses a threat to second-tier hub cities in terms of losing hub status and long haul routes. As airlines merged in the USA, it was often more efficient to close a duplicating hub and concentrate resources on the stronger one. This paper...

This paper presents models that explain why merchants accept payment cards even when the fees they face exceed the transactional benefits they receive from a card transaction. The prevalent assumption - merchants accept cards only when they earn positive net transactional benefits - holds only...

The purpose of our paper is to generalize the model by Arnott et al. (1990a) to situations with a single origin and destination connected by two routes and to test the analytical results in an experiment with discrete time departure choices. The experimental evidence does not support the...

This paper presents new data on telecommunications reform for a cross section of countries. We measure telecommunications reform along two dimensions: entry barriers and regulatory independence. This data set is combined with a comprehensive set of performance, institutional and political data...

The No Surcharge Rule (NSR) prevents merchants from charging more to consumers who pay by card versus other means ("cash"). We consider a payment network facing local monopolist merchants that serve two consumer groups, card users and cash users. Unlike in prior work, transaction quantities are...

This paper is an exploratory study on the interconnection economics of All-IP networks. To understand the economics of the yet-to-be-realized All-IP networks, this paper begins with discussing three important features of current IP networks: packet switching, receiver benefit, and two-sidedness....

While the "cashless society" has not yet fully become a reality, payment choices by consumers and merchants have been moving the U.S. economy in that direction slowly and steadily over the past five decades. In this study, a companion paper to Garcia-Swartz (2006a) in this volume, we lay out the...