To cope with air traffic growth and congested airports, two solutions are apparent on the supply side: 1) use larger aircraft in the hub and spoke system; or 2) develop new routes through secondary airports. An enlarged route system through secondary airports may increase the proportion of route monopolies in the air transport market.The monopoly optimal non linear pricing policy is well known in the case of one dimension (one instrument, one characteristic) but not in the case of several dimensions. This paper explores the robustness of the one dimensional screening model with respect to increasing the number of instruments and the number of characteristics. The objective of this paper is then to link and fillthe gap in both literatures.


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    Title :

    Route Monopolies and Optimal Nonlinear Pricing


    Contributors:
    J. Tournut (author)

    Publication date :

    2005


    Size :

    60 pages


    Type of media :

    Report


    Type of material :

    No indication


    Language :

    English