Analysis reveals that slot policies can achieve local welfare maximization in congested airports, unlike pricing policies.
This study considers a stylised airport network, designed to identify clearly the role of local and nonlocal passengers for the assessment of local welfare-maximising airport congestion policies. The analysis shows that, in our framework, the local welfare-maximising slot quantity can coincide with the first-best outcome, whereas this is impossible in the case of pricing policy. Whether the outcomes coincide in the case of slot policy depends on the shares of locals and non-locals in terms of inframarginal and marginal passengers.
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Lang et al. (2022) studied this question.
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