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.
Bottasso, A., Bruno, M., Conti, M., & Piga, C. (2017). Competition, vertical relationship and countervailing power: Empirical evidence from the UK airport industry. Journal of Regulatory Economics, 52(1), 37-62. https://doi.org/10.1007%2Fs11149-017-9332-z