Abstract

http://ssrn.com/abstract=2016126
 


 



The Assessment of Market Power of Airports


Andreas Polk


Berlin School of Economics and Law

Volodymyr Bilotkach


Newcastle Business School

March 5, 2012


Abstract:     
Airport regulation regimes are under revision in many countries. The decision about the extent of airport regulation is usually based on an economic analysis of market power, which is done in two steps. The first step involves defining the relevant markets the airport is operating on. This is based on an economic analysis of the particular circumstances of the airport, and must be compatible with the competition law. The second step consists of the evaluation of the airport's competitive position in all identified markets. Due to industry particularities, many diverse issues must be taken into account in this process, such as questions of upstream and downstream market interaction, airport congestion, peak-load pricing, or offsetting bargaining power. Many of these questions have been theoretically analyzed in the industrial organization literature, but have only rarely been applied in practical competition analysis. This paper builds a bridge between the theoretical insights and their practical application to airport regulation policy. We derive the principles for a sound economic analysis of the market power of airports, given the time and data constraints encountered in practice by the regulatory authorities and other involved parties.

Number of Pages in PDF File: 41

Keywords: regulation policy, competition policy, airports, aviation

JEL Classification: K21, L41, L43

working papers series





Download This Paper

Date posted: March 6, 2012  

Suggested Citation

Polk, Andreas and Bilotkach, Volodymyr, The Assessment of Market Power of Airports (March 5, 2012). Available at SSRN: http://ssrn.com/abstract=2016126 or http://dx.doi.org/10.2139/ssrn.2016126

Contact Information

Andreas Polk (Contact Author)
Berlin School of Economics and Law ( email )
Badensche Strasse 50-51
Berlin, D-10825
Germany
+49 30 85789162 (Phone)
Volodymyr Bilotkach
Newcastle Business School ( email )
Newcastle upon-Tyne, NE1 8ST
United Kingdom
Feedback to SSRN


Paper statistics
Abstract Views: 687
Downloads: 116
Download Rank: 143,418

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.328 seconds