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  3. American Economic Review
  4. December 2007
  5. Another Look at Airport Congestion Pricing

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Another Look at Airport Congestion Pricing

  • Steven A. Morrison
  • Clifford Winston
American Economic Review
vol. 97, no. 5, December 2007
(pp. 1970–1977)
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Abstract

We study alternate approaches to implement congestion pricing at US airports. Conventional formulations toll all aircraft without determining whether a plane operated by a given airline delays other planes that it operates or planes operated by other airlines. Recent work points out optimal pricing calls for carriers to be charged only for the delay they impose on other airlines. We find a small difference between the net benefits generated by the two congestion-pricing policies because the bulk of airport delays are not internalized and because the efficiency loss from pricing internalized congestion is small. (JEL L11, L93, R41)

Citation

Morrison, Steven, A., and Clifford Winston. 2007. "Another Look at Airport Congestion Pricing." American Economic Review, 97 (5): 1970–1977. DOI: 10.1257/aer.97.5.1970

Additional Materials

JEL Classification

  • L11 Production, Pricing, and Market Structure; Size Distribution of Firms
  • L93 Air Transportation
  • R41 Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise