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No need to regulate airports with predominantly non-aeronautical revenues
Kratzsch, Uwe
Sieg, Gernot
2012-12-19
Abstract
This paper analyzes a profit-maximizing private airport with market power in providing aeronautical
services. Our model implies that airports with ample capacity may voluntarily abstain from abusing their
market power if non-aeronautical revenues are airports’ main source of income. In this case, a price
regulation that is confined to the aviation business will be unnecessary from a welfare point of view.
Series
European Transport / Trasporti Europei
52
Languages
en
File(s)