Multi-unit auctions are sometimes plagued by the so-called exposure problem. In this paper, we analyze a simple game called the "chopstick auction" in which bidders are confronted with the exposure problem. We do so both in theory and in a laboratory experiment. In theory, the chopstick auction...

Experimental subjects usually self-select to the laboratory and this may introduce a bias to the conclusions derived from observing their behavior. We analyze data stored by a subject-pool management program at an experimental laboratory and speculate about the effect of individual decisions on...

Ramsey pricing is considered to be a quasi-optimum pricing scheme designed for a multiproduct natural monopolist. Ramsey prices are optimal for airports with cost recovery problems, but are inefficient for busy airports. If so then it is interesting to check if current charges are close to the...

From a theoretical prospective, marginal costs are one of the main determinants of pricing policy. However, their complexity and to some extend the artificiality of marginal costs makes the concept very unpopular among practitioners, also in the aviation industry. Nevertheless, in this paper we...