Do carriers internalize congestion costs? Empirical evidence on the internalization question

Journal of Urban Economics

Volumn 65, Issue 1, 2009, Pages 24-37

  Rupp, Nicholas G ^a  

^a EAST CAROLINA UNIVERSITY   (United States)

Author keywords

Airline hubbing; Airport congestion; Flight delays; Internalization

Indexed keywords

EID: 56449093575     PISSN: 00941190     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jue.2008.07.003     Document Type: Article

References (36)

1. Ahmadbeygi, Shervin A., Cohn, Amy, Guan, Yihan, Belobaba, Peter, 2007. Analysis of the potential for delay propagation in passenger aviation flight networks. Working paper. University of Michigan, Industrial and Operations Engineering
2. Bhat C., and Sardesai R. The impact of stop-making and travel time reliability on commute mode choice. Transportation Research: Part B 40 (2006) 709-730
3. Borenstein S., and Netz J. Why do all flights leave at 8 am?: Competition and departure-time differentiation in airline markets. International Journal of Industrial Organization 17 5 (1999) 611-640
4. Borins S.F. Pricing and investment in a transportation network: The case of Toronto airport. Canadian Journal of Economics 11 4 (1978) 680-700
5. Brueckner J.K. Airport congestion when carriers have market power. American Economic Review 92 5 (2002) 1357-1375
6. Brueckner J.K. Internalization of airport congestion: A network analysis. International Journal of Industrial Organization 23 (2005) 599-614
7. Brueckner J.K., and Pai V. Technological innovation in the airline industry: The impact of regional jets. International Journal of Industrial Organization (2008) 10.1016/j.ijindorg.2008.05.003
8. Brueckner, Jan K., Van Dender, Kurt, 2007. Atomistic congestion tolls at concentrated airports? Seeking a unified view in the internalization debate. Working paper No. 2033, Category 1: Public Finance. June 2007. CESifo
9. Carlin A., and Park R. Marginal cost pricing of airport runway capacity. American Economic Review 60 3 (1970) 310-319
10. Daniel J.I. Congestion pricing and capacity of large hub airports: A bottleneck model with stochastic queues. Econometrica 63 2 (1995) 327-370
11. Daniel J.I. Distributional consequences of airport congestion pricing. Journal of Urban Economics 50 (2001) 230-258
12. Daniel J.I., and Harback K.T. (When) Do hub airlines internalize their self-imposed congestion delays?. Journal of Urban Economics 63 2 (2008) 583-612
13. Daniel J.I., and Pahwa M. Comparison of three empirical models of airport congestion pricing. Journal of Urban Economics 47 (2000) 1-38
14. Forbes S.J. The effect of airline traffic delays on airline prices. International Journal of Industrial Organization 26 (2008) 1218-1232
15. Geewax, Marilyn, 2007. Bush says search is on for air travel delays. Cox News Service, 28 September 2007. Washington DC Bureau
16. Ito H., and Lee D. Assessing the impact of the September 11th terrorist attacks on U.S. airline demand. Journal of Economics and Business 57 1 (2005) 75-95
17. Levine M.E. Landing fees and the airport congestion problem. Journal of Law and Economics 12 1 (1969) 79-108
18. Mayer C., and Sinai T. Network effects, congestion externalities, and air traffic delays: Or why all delays are not evil. American Economic Review 93 4 (2003) 1194-1215
19. Mayer, Christopher, Sinai, Todd, 2003b. Why do airline schedules systematically underestimate travel time? Working paper. Wharton School of Business
20. Mazzeo M.J. Competition and service quality in the U.S. airline industry. Review of Industrial Organization 22 4 (2003) 275-296
21. Morrison S., and Winston C. Enhancing the performance of the deregulated air transportation system. Brookings Papers on Economic Activity: Microeconomics 1 (1989) 61-112
22. Morrison S., and Winston C. The effect of FAA expenditures on air travel delays. Journal of Urban Economics 63 2 (2008) 669-678
23. Morrison S., and Winston C. Another look at airport congestion pricing. American Economic Review 97 5 (2007) 1970-1977
24. Office of the Press Secretary, Oval Office, 2007. President Bush meets with secretary of transportation Mary Peters and federal aviation administration acting administrator Bobby Sturgell. The White House press release (27 September)
25. Pels E., Nijkamp P., and Rietveld P. Access to and competition between airports: A case study for the San Francisco Bay Area. Transportation Research Part A 37 (2003) 71-83
26. Pels E., and Verhoef E.T. The Economics of airport congestion pricing. Journal of Urban Economics 55 (2004) 257-277
27. Rupp N.G., and Holmes G.M. An investigation into the determinants of flight cancellations. Economica 73 292 (2006) 749-784
28. Rupp N.G., Owens D., and Plumly L.W. Does competition influence airline on-time performance. In: Lee D. (Ed). Advances in Airline Economics: Competition Policy and Antitrust, vol. 1 (2006), Elsevier, Amsterdam
29. Small K.A. The scheduling of consumer activities: Work trips. American Economic Review 72 3 (1982) 467-479
30. Suzuki Y. The relationship between on-time performance and airline market share. Transportation Research: Part E: Logistics and Transportation Review 36 2 (2000) 139-154
31. US Department of Transportation, 2001. Federal Aviation Administration, Airport Capacity Benchmark Report 2001. US Government Printing Office. Washington, DC
32. US Department of Transportation, 2004. Federal Aviation Administration, Airport Capacity Benchmark Report 2004. US Government Printing Office. Washington, DC
33. Vansteenwegen P., and Van Oudheusden D. Decreasing the passenger waiting time for an intercity rail network. Transportation Research: Part B 41 (2007) 478-492
34. Warburg V., Bhat C.R., and Adler T. Modeling demographic and unobserved heterogeneity in air passengers sensitivity to service attributes in itinerary choice. Transportation Research Record vol. 1951 (2006) 7-16
35. Wardman M. Public transport values of time. Transport Policy 11 4 (2004) 363-377
36. Winston C. Conceptual developments in the economics of transportation: An interpretative study. Journal of Economic Literature 23 (1985) 57-94