Inverting the regulatory rules? Optimizing airport regulation to account for commercial revenues

Arbeitspapier

This paper analyzes the role of commercial revenues in today's airport regulatory system. We find that the current regulatory regime only partially achieves core aims such as welfare maximization. After highlighting instances in which airport price regulation is not economically justified, we explore the potential for airports to exercise market power in the commercial sector. In certain circumstances, we advocate the introduction of an 'inverted' dual till system under which commercial as opposed to aviation revenues are the focus of price regulation. The suitability of such a system varies from airport to airport, however, depending on various factors, such as the airport's competitive environment and the presence of capacity constraints.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr ; No. 1/2011

Classification and Topics

• Classification: Wirtschaft
• Subject: Airport regulation ; non-aviation revenues ; price differentiation ; single till ; dual till

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Evangelinos, Christos ; Püschel, Ronny ; Goldhahn, Susan
• Event: Veröffentlichung
• (who): Technische Universität Dresden, Fakultät Verkehrswissenschaften
• (where): Dresden
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/48496
• Last update: 10.03.2025, 11:45 AM CET