Abstract

http://ssrn.com/abstract=1757674
 
 

Footnotes (33)



 


 



Airport Congestion Pricing and its Welfare Implications: The Case of Variable Passenger Time Costs


Andrew Yuen


The Chinese University of Hong Kong (CUHK)

Anming Zhang


University of British Columbia (UBC) - Sauder School of Business

February 2011

Pacific Economic Review, Vol. 16, Issue 1, pp. 83-102, 2011

Abstract:     
This paper develops an analytical framework for airport congestion pricing by considering variable passenger time costs. We find that, first, congestion delays will not be fully internalized at the carrier level under different market structures, including those airports dominated by a monopoly airline. Therefore, congestion pricing is necessary regardless of the market structures. Second, although congestion pricing is welfare‐improving, it may not be Pareto‐improving. This might explain why congestion pricing is unpopular in the real world.

Number of Pages in PDF File: 20

Accepted Paper Series


Date posted: February 8, 2011  

Suggested Citation

Yuen, Andrew and Zhang, Anming, Airport Congestion Pricing and its Welfare Implications: The Case of Variable Passenger Time Costs (February 2011). Pacific Economic Review, Vol. 16, Issue 1, pp. 83-102, 2011. Available at SSRN: http://ssrn.com/abstract=1757674 or http://dx.doi.org/10.1111/j.1468-0106.2010.00536.x

Contact Information

Andrew Yuen
The Chinese University of Hong Kong (CUHK) ( email )
Shatin, N.T.
Hong Kong
Hong Kong
Anming Zhang
University of British Columbia (UBC) - Sauder School of Business ( email )
2053 Main Mall
Vancouver, BC V6T 1Z2
Canada
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