| Title: | Rivalry between airport ancillary and city-center supplies | Authors: | Czerny, AI Zhang, H |
Issue Date: | Sep-2020 | Source: | Transportation research. Part E, Logistics and transportation review, Sept. 2020, v. 141, 101987 | Abstract: | Passengers can buy souvenirs or rent a car at the airport or in the city-center. This paper develops a basic model with unit demands for airport ancillary and city-center demands to derive equilibrium pricing strategies of profit-maximizing airports and city-center companies and evaluates them from the social viewpoint. Passengers are myopic in the sense that only ticket prices matter for flight decisions or foresighted in the sense that non-aeronautical airport and city-center supplies matter for flight decisions, too. We find that the welfare evaluation of equilibrium airport pricing behavior can be independent of whether passengers are myopic or foresighted. | Keywords: | Airport privatization Ancillary goods City-center rivalry Foresighted passengers Myopic passengers |
Publisher: | Pergamon Press | Journal: | Transportation research. Part E, Logistics and transportation review | ISSN: | 1366-5545 | EISSN: | 1878-5794 | DOI: | 10.1016/j.tre.2020.101987 |
| Appears in Collections: | Journal/Magazine Article |
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