Airport pricing and regulation under passenger demand uncertainty

• Published in: Transportmetrica. (Abingdon, Oxfordshire, UK) Vol. 10; no. 1; pp. 1184 - 1205
• Main Authors: Liu, Wen-Jing, Gong, Xu, Li, Zhi-Chun
• Format: Journal Article
• Language: English
• Published: Abingdon Taylor & Francis 31.12.2022; Taylor & Francis Ltd
• Subjects: Airport pricing; Airports; dual-till regulation; passenger demand uncertainty; Passengers; Pricing; Regulations; regulatory level; risk aversion; single-till regulation; Travel demand; Uncertainty

This paper addresses the airport pricing and regulation issues in the presence of passenger demand uncertainty. The regulatory schemes concerned include the single-till and dual-till price-cap regulations. A vertical-structure model is presented to determine the optimal airport charges under the sin...