Airport and Airline Competition in a Multiple Airport Region: An Analysis Based on the Nested Logit Model

E. Pels, P. Nijkamp, P. Rietveld

Research output: Chapter in Book / Report / Conference proceedingChapterAcademic

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Abstract

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.
Original languageEnglish
Title of host publicationAirport Facilities: Innovations for the Next Century
EditorsM.T. McNerney
Place of PublicationReston Virginia
PublisherASCE
Pages60-76
DOIs
Publication statusPublished - 1998

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