In this paper, we study whether competition in the airport market and the vertical interactions between upstream airports and downstream airlines influence the airport pricing decisions. Using a panel of the 24 largest UK airports, as well as a refined definition of airports’ market structure, we find that lower concentration in an airport’s catchment area and higher airlines countervailing power are associated to lower aeronautical charges.
|Number of pages||26|
|Journal||Journal of Regulatory Economics|
|Early online date||29 May 2017|
|Publication status||Published - Aug 2017|