AIRPORT PRICING AND CAPACITY DECISIONS UNDER IMPERFECT COMPETITION

摘要

This paper describes the changing landscape of the Asia airport industry and examines theoptimal airport pricing and capacity decisions in a model that takes into account of threeimportant aspects. First, airports are imperfect competitors to one another and compete forairline users and hub status through airlines' route decisions. Second, the structures ofdownstream market served by airlines affect the optimality of airport's pricing and capacitydecisions that may be made simultaneously. Third, mixed ownership represents anotheralternative to pure private or public ownership. The paper then proceeds to propose strategicdirections for airport developments.