Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 1998-07-09
Number: 98-073/3
Author-Name: Eric Pels
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Peter Nijkamp
Author-Email: pnijkamp@feweb.vu.nl
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Piet Rietveld
Author-Email: prietveld@feweb.vu.nl
Author-Workplace-Name: Vrije Universiteit Amsterdam
Title: Equilibrium Airfares, Frequencies and Airport Taxes in a Multiple Airport Region: An Application of the Nested Logit Demand Model
Abstract: In this paper a model, based on the nested multinomial logit model, is used to analyze airport competition and airline competition in a multiple airport region. It is shown that if the frequency elasticity of demand is smaller than 1, airfare-frequency and airport tax equilibria exist and are unique.Symmetric equilibria are derived analytically and their properties are discussed. Asymmetric equilibria are obtained numerically, and their properties are discussed.
File-Url: https://papers.tinbergen.nl/98073.pdf
File-Format: application/pdf
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Handle: RePEc:tin:wpaper:19980073