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Free Content Transportation Infrastructure Management

One- and Two-sided Market Approaches

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We study a profit-maximising airport under one- and two-sided market structures. Our analysis reveals that the airport management will choose the welfare maximising price structure based on market characteristics and demand complementarity. We find that, in contrast with the traditional literature, airports in low- or high-density markets will exercise market power, while over a broad range of market densities the airport sets prices to incentivise airlines to expand its services, and both airport and airlines realise strictly positive profits.
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Document Type: Research Article

Publication date: May 1, 2013

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  • JTEP is international both in terms of authors and readership. Since it first appeared, more than 650 papers have been published from Europe, North America, the Pacific Rim/Australasia, Africa, Asia, and South America. This international variety is also reflected in the readership.

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