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Dettaglio pubblicazione

2017, JOURNAL OF TRANSPORT ECONOMICS AND POLICY, Pages 290-312 (volume: 51)

Airport cities and multiproduct pricing (01a Articolo in rivista)

D'Alfonso T., Bracaglia V., Wan Y.

We study pricing of aviation and non-aviation products in a private monopolistic airport city and model two features. First, non-aviation goods are demanded by both air travellers and nontravellers. Second, the utility from consuming non-aviation goods may depend on whether the consumer travels or not. The impacts of these features on optimal aviation and non-aviation charges would depend on whether individuals foresee the utility of non-aviation goods or not while deciding to buy air tickets. It is profit maximising and welfare enhancing to manipulate the non-aviation product mix in a way that raises the extra surplus gained by travellers.
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