CONGESTION TOLLS FOR COMMERCIAL AIRPORTS

This paper discusses the role of congestion tolls in increasing the efficiency of use of commercial airports, in terms of a simple model of air transportation. In contrast to previous discussions, users and producers of transportation service (passengers and airlines) are explicity distinguished. In the first version of the model, ticket prices are assumed-unrealistically-to be flexible and competitively determined; then perfect optimality is attainable by imposing an appropriate toll either on airlines or on passengers. In the more realistic second version of the model, ticket price is based above the competitive level. In the absence of a toll, there are two inefficiences: the level of transportation is non-optimal, and it is produced inefficiently, using partially loaded airplanes. An appropriate toll on airlines can do much to correct both of these inefficiencies, and is always superior to the best toll or passengers.

• Corporate Authors:

  Econometric Society

  Yale University
  New Haven, CT  United States 
• Authors:
  • Park, R E
• Publication Date: 1971-9

Media Info

• Pagination: p. 683-694
• Serial:
  • ECONOMETRICA : JOURNAL OF THE ECONOMETRIC
  • Volume: 39
  • Issue Number: 5

Subject/Index Terms

• TRT Terms: Air transportation; Airlines; Airport capacity; Airport operations; Finance; Mathematical models; Passengers; Prices; Tolls; Traffic congestion
• Candidate Terms: Airport congestion
• Uncontrolled Terms: Airspace capacity; Models
• Subject Areas: Aviation; Finance; Passenger Transportation; Terminals and Facilities;

Filing Info

• Accession Number: 00155669
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Sep 20 1977 12:00AM