VERTICAL CONTRACTS BETWEEN AIRPORTS AND AIRLINES: IS THERE A TRADE-OFF BETWEEN WELFARE AND COMPETITIVENESS?, forthcoming

• 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 Science

Scopus

Econlit

Scientific classification

FOS: Social sciences > Other social sciences

CORDIS: Social sciences

Other information

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 contracts, regarding welfare, pro-competitiveness and the scope for regulation. We find that two types of contracts 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 the price of which is capped.

Language: Portuguese

Type (Professor's evaluation): Scientific