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.

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  • Corporate Authors:

    American Economic Association

    Suite 809, Oxford House, 1313 21st Avenue South
    Nashville, TN  USA  37212
  • Authors:
    • Carlin, A
    • PARK, R E
  • Publication Date: 1970-6

Media Info

  • Features: Photos; References;
  • Pagination: p. 310-319
  • Serial:

Subject/Index Terms

Filing Info

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