1997
DOI: 10.1016/s1366-5545(97)00041-0
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Airport Services and Airport Charging Systems: A Critical Review of The EU Common Framework

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Cited by 5 publications
(2 citation statements)
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“…The directive also allows for willingness-to-pay and Ramsey pricing mechanisms, which by their nature are discriminatory. Further, the directive permits the charges to be related to the airports overall costs or indeed to a regional system of airports' overall costs (these and other issues are discussed in detail in Reynolds-Feighan and Feighan (1997)). Unfortunately this 'bundling' of services creates problems when trying to relate charges for particular services to their costs: the pricing signals become obscured.…”
Section: Issues In Expanding Capacitymentioning
confidence: 99%
“…The directive also allows for willingness-to-pay and Ramsey pricing mechanisms, which by their nature are discriminatory. Further, the directive permits the charges to be related to the airports overall costs or indeed to a regional system of airports' overall costs (these and other issues are discussed in detail in Reynolds-Feighan and Feighan (1997)). Unfortunately this 'bundling' of services creates problems when trying to relate charges for particular services to their costs: the pricing signals become obscured.…”
Section: Issues In Expanding Capacitymentioning
confidence: 99%
“…According to the literature, marginal cost pricing might be an optimal pricing structure for airports, but as described above, in reality the airports' charges are weight based or close to their average costs (Carlsson, 2003;Mueller (2014a, 2014b), I). Marginal cost pricing (the first best solution) maximizes welfare, but will result in a loss if the marginal costs be below the average costs (Reynolds-Feighan & Feighan, 1997;Mankiw, 2008), which is very likely in the case of airports (Doganis, 2002). As an alternative, it is possible to use the Ramsey pricing approach, which determines second best charges and cover average total costs.…”
Section: Introductionmentioning
confidence: 99%