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Is it efficient to discriminate passengers in airport charges according to flight distance?

Type: article

Abstract: This paper examines the pricing strategy of private airports.To capture the relationship between airport fees and airport locations, we develop a model with the asymmetric hub-spoke network.We obtain the following results.First, spoke airports which are far from the hub set their airport fees low.Second, the hub airport offers a large discount for transit passengers when the average distance between the hub and spokes is long.Finally, when all cities possess the same population, the policy maker can improve social welfare by allowing the hub to discriminate transit passengers in the setting of airport fees.

Source: Institutional Repositories DataBase (IRDB)

DOI: 10.15002/00022548

Authors: Morimoto, Yu, Teraji, Yusuke

Institutions: Konan University, Tezukayama University

Language: English

Topic: Aviation Industry Analysis and Trends

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Sustainable cities and communities

Open Access status: green

OpenAlex ID: W7144043239

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