The effects of concession revenue sharing contracts in airport competition

Nerja, Adrián and Sánchez, Mariola (2020): The effects of concession revenue sharing contracts in airport competition. Published in: Economics of Transportation , Vol. 28, (December 2021)

Abstract

This paper studies the effects of concession revenue sharing contracts to analyze how airport-airline vertical structures compete for passengers in the same catchment area. The analysis studies the effects of such contracts depending on airport ownership structure. We show that private airports tend to share less concession revenues than public ones eventually leading to lower welfare levels. These results have relevant policy implications when concession revenue sharing contracts are specified in practice.

• Item Type: MPRA Paper
• Language: English
• Keywords: Revenue sharing contracts; Airport competition; Concession revenues; Airportairline vertical cooperation
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships ; Contracts and Reputation ; Networks; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L93 - Air Transportation; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R49 - Other

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