Highlights ► Public vs. private ownership of airports in the presence of airport complementarity. ► Both Cournot competition and differentiated Bertrand competition are considered. ► Privatizing an airport could be welfare improving. ► In most cases, privatization of the two airports is the unique Nash equilibrium. ► Both countries are better off in terms of welfare, with publicly owned airports.

    Abstract We study the effects of airport ownership (private vs. government) on welfare in the presence of airport complementarity, where each airport is located in a different country. Considering Cournot competition in the airline market, the unique Nash equilibrium is such that the two countries privatize their airports, even though both countries are better off, from a welfare perspective, with public (government-owned) airports. Considering a differentiated Bertrand competition in the airline market, the same result prevails if the cross price elasticities are sufficiently high, otherwise the symmetric government-ownership of airports may also be a Nash equilibrium.


    Zugriff

    Zugriff prüfen

    Verfügbarkeit in meiner Bibliothek prüfen

    Bestellung bei Subito €


    Exportieren, teilen und zitieren



    Titel :

    Airport complementarity: Private vs. government ownership and welfare gravitation


    Beteiligte:
    Mantin, Benny (Autor:in)

    Erschienen in:

    Erscheinungsdatum :

    2011-10-02


    Format / Umfang :

    8 pages




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch






    Trends in Airport Ownership

    Harbison, P. | British Library Conference Proceedings | 1995


    Airport, airlines joint ownership

    O'Sullivan, James | SLUB | 1977


    Government ownership

    DeBerard, F.B. | Engineering Index Backfile | 1916