MARGINAL COST PRICING OF AIRPORT RUNWAY CAPACITY

This paper develops marginal delay or congestion costs and explores the use of congestion tolls as a solution to the short-term congestion problem in La Guardia. The study concludes that because of the practical problems involved, equilibrium marginal cost pricing does not appear to be a feasible alternative for allocating runway capacity at La Guardia. The use of proportional marginal cost pricing, however, offers some of the same efficiency advantages without most of the problems. It is preferable, on the grounds of efficiency, to the present weight-based, value of service pricing used at most airports. Use of administrative limits on schedules would be required in conjunction with proportional marginal cost pricing, however, to increase carrier load factors to more efficient levels.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00028282
• Corporate Authors:

  American Economic Association

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• Authors:
  • Carlin, A
  • PARK, R E
• Publication Date: 1970-6

Media Info

• Features: Photos; References;
• Pagination: p. 310-319
• Serial:
  • American Economic Review
  • Volume: 60
  • Issue Number: 3
  • Publisher: American Economic Association
  • ISSN: 0002-8282

Subject/Index Terms

• TRT Terms: Airport capacity; Airport operations; Costs; Finance; Pricing; Tolls; Traffic congestion
• Candidate Terms: Airport congestion
• Identifier Terms: LaGuardia Airport
• Subject Areas: Aviation; Finance; Terminals and Facilities;

Filing Info

• Accession Number: 00155651
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Sep 20 1977 12:00AM