Saturday, March 13, 2010

Slot Allocation at Congested Airports

For blog readers fluent in Portugese, Alessandro V.M. Oliveira of the Latin American Center for Transportation Economics has a new article on airport slots available online.  See Slot Allocation at Congested Airports and Its Impacts on Airline Market Power, 4 Revista de Literatura dos Transportes 5 (2010) (available from SSRN here).  From the abstract:

This study aims to analyze the impact of the dominance of essential facilities on market power, and thus on the generation of competitive advantage for the firms holding them. By using a conduct parameter framework, I model the behavior of oligopolistic firms under conditions of product differentiation - on the demand side - and a range of patterns of strategic interaction - on the supply side. Through structural estimation it was empirically investigated the emergence of market power due to the dominance or concentration of departure and landing slots at two major airports of Brazil.

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