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Title: No need to regulate airports with predominantly non-aeronautical revenues
Authors: Kratzsch, Uwe
Sieg, Gernot
Keywords: airport regulationairport pricingairline-airport strategic interactiondual-tillnon-aviation revenue
Issue Date: 19-Dec-2012
Series/Report no.: European Transport / Trasporti Europei
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.
Type: Article
ISSN: 1825-3997
Appears in Collections:European Transport / Trasporti Europei (2012) 52

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