A Solution to Airport Delays
W. Tom Whalen
U.S. Department of Justice - Antitrust Division
Dennis W. Carlton
University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)
U.S. Department of Justice
Oliver M. Richard
U.S. Department of Justice - Economic Analysis Group - Antitrust Division
Regulation, Vol. 31, No. 1, pp. 30-36, Spring 2008
Airport delays are increasingly significantly. These delays are largely attributable to increased congestion on runways and at gates as airlines increasingly use smaller but more frequently-departing passenger jets. This paper proposes reducing congestion by auctioning off takeoff and landing 'slots' at airports. These auctions would have several benefits: they would redistribute airport facilities toward higher-valued uses, incentivize airlines to make more efficient use of airport capacity, and generate revenue to fund airport improvements and capacity expansion.
Number of Pages in PDF File: 7
Keywords: airport delays, congestion, proposed solutions, auctions, incentives, efficiency, FAA, market based system
JEL Classification: D42, D44, D49Accepted Paper Series
Date posted: August 15, 2009
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