TY - JOUR
T1 - Airport and Airline Competition for Passengers Departing from a Large Metropolitan Area
AU - Pels, E.
AU - Nijkamp, P.
AU - Rietveld, P.
PY - 2000
Y1 - 2000
N2 - In this paper an airport and airline choice model, based on a nested multinomial logit model, is developed to investigate both airport competition and airline competition in a metropolitan area with multiple departure airports. The model can be used to analyze the effects of, e.g., an improvement in accessibility of a specific airport in a metropolitan area. It is shown analytically that if the frequency elasticity of demand is smaller than 1, unique airfare-frequency and passenger-charge equilibria exist. Next, symmetric equilibria are derived analytically; their properties are also examined. Finally, asymmetric equilibria are derived numerically, while their properties are discussed as well. © 2000 Academic Press.
AB - In this paper an airport and airline choice model, based on a nested multinomial logit model, is developed to investigate both airport competition and airline competition in a metropolitan area with multiple departure airports. The model can be used to analyze the effects of, e.g., an improvement in accessibility of a specific airport in a metropolitan area. It is shown analytically that if the frequency elasticity of demand is smaller than 1, unique airfare-frequency and passenger-charge equilibria exist. Next, symmetric equilibria are derived analytically; their properties are also examined. Finally, asymmetric equilibria are derived numerically, while their properties are discussed as well. © 2000 Academic Press.
U2 - 10.1006/juec.1999.2156
DO - 10.1006/juec.1999.2156
M3 - Article
SN - 0094-1190
VL - 48
SP - 29
EP - 45
JO - Journal of Urban Economics
JF - Journal of Urban Economics
ER -