“…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.…”