Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating price-cost margins is the topic of this paper. Methodologically, the endogenous cost model we propose leads to an additional equation that allows for the simultaneity in price...

This paper provides the first analysis of the trade-off between convenient flight connections and airport congestion. A continuous spatial model illustrates this trade-off in a framework where a small gap between flight operating times raises congestion while also shortening a connecting...

This study investigates airport pricing and capacity investment when passengers face schedule and congestion delays. Two countries' airports are served by each country's home carrier. Airports choose their charges on a per-flight and/or per-passenger basis. Carriers choose both quantities and...

This study investigates congestion pricing and capacity investment for two interlinked countries (airports). Each country's home airline serves both airports, and passengers make a round trip. Under Bertrand-Nash behavior assumptions, we find the following. First, a country's locally optimal...

This paper provides the first analysis of the trade-off between convenient flight connections and airport congestion. A continuous spatial model illustrates this trade-off in a framework where a small gap between flight operating times raises congestion while also shortening a connecting...