This study considers a stylized airport network designed to clearly identify the role of local and non-local passengers for the assessment of local welfare-maximizing airport congestion policies. The analysis shows that the local welfare-maximizing slot quantity can coincide with the first-best...

This paper analyzes third-degree price discrimination of a monopoly airline in the presence of congestion externality when all markets are served. The model features the business-passenger and leisure-passenger markets where business passengers exhibit a higher time valuation, and a less...

The five countries in Central Asia, namely Uzbekistan, Kazakhstan, Turkmenistan, Tajikistan, and Kyrgyzstan, are landlocked and therefore rely critically on aviation for passenger travel and express cargo logistics. However, despite substantial growth in the past decade, the aviation market in...

Most airports operate under public ownership, while the number of private and economically regulated airports is increasing. Furthermore, airports nowadays earn as much revenue from commercially-oriented business activities as from aeronautical activities. These two observations lead to a...

Passengers can buy souvenirs, food and beverages or rent a car at the airport or in the city-center. This paper develops a basic model with unit demands for airport ancillary and city-center demands (passengers may park their one car and not many) to derive equilibrium pricing strategies of...

Consider a principal who assigns a job with two tasks to two identical agents. Monitoring the agents' efforts is costly, therefore the principal rewards agents based on their (noisy) relative outputs. This paper addresses the question whether the principal should evaluate the outputs in each...

Airlines maintain complex networks that are to large extents complementary. Therefore, some passengers need to change aircraft and airlines to fly from their origin to their final destination. The present study captures pricing problems in terms of double marginalization but goes one step...

Most airports operate under public ownership, while some are privatized and economically regulated. Only a few airports are privately owned and experience little or no ex-ante regulation of airport charges. On the other hand, airports nowadays earn as much revenue from transport-related...