Vertical Contracts between Airports and Airlines Is there a Trade-off between Welfare and Competitiveness?

• Type: Article in International Scientific Journal
• Date: 2011

Authors

Cristina Barbot (Author) FEP

Journal

Title: Journal of Transport Economics and Policy

Vol. 45 No. 2

Pages: 277-302

ISSN: 0022-5258

Publisher: University of Bath

Indexing

ISI Web of Knowledge - 20 Citations

Scopus - 30 Citations

Other information

Authenticus ID: P-002-RVT

Abstract (EN): Airports and airlines have been increasingly establishing vertical contracts, with important implications for policy issues, namely for regulation and price discrimination legislation. In this paper, we develop a model that analyses the effects of three types of vertical contract, regarding welfare, pro-competitiveness and the scope for regulation. We find that two types of contract are anti-competitive, and that in all of them consumers are better off, though within some conditions. We also conclude that regulation may improve welfare, depending on the type of contract, and that price capping has different effects according to the facility which has its price capped.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 26