eprintid: 18369 rev_number: 14 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/01/83/69 datestamp: 2015-09-21 13:08:15 lastmod: 2021-04-02 15:49:52 status_changed: 2018-04-11 15:46:56 type: monograph metadata_visibility: show creators_name: Ivaldi, Marc creators_name: Sokullu, Senay creators_name: Toru-Delibasi, Tuba creators_idrefppn: 058494375 title: Airport Prices in a Two-Sided Market Setting: Major US Airports ispublished: pub subjects: subjects_ECO abstract: This paper analyzes the rationale of airport business models. First, it provides evidence that the airports should be considered as two sided markets because of significant network externalities between the airlines and the passengers. This result invalidates the traditional approach where the airport-airline-passenger relationship is considered as vertically integrated, taking passengers as final consumers. Second, a testing procedure aimed at eliciting the real business model of airports demonstrates that the major U.S. airports do not internalize the externalities existing between airlines and passengers. We find that these airports set profit maximizing prices for the non-aeronautical services to passengers and Ramsey prices for the aeronautical services to airlines. Given these results, we conduct a welfare analysis by simulating the implementation of profit maximizing prices when an airport fully accounts for the two-sidedness of its activities. In particular, we show that the impact on social welfare is not independent on the specific features of each airport and that the privatization of airports cannot be considered as the only solution for airports. date: 2015-05 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/29375 faculty: tse divisions: tse keywords: Two-sided markets keywords: Airport pricing keywords: Airport regulation language: en has_fulltext: TRUE view_date_year: 2015 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 15-587 place_of_pub: Toulouse pages: 38 institution: Université Toulouse 1 Capitole department: Toulouse School of Economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:29375 harvester_local_overwrite: oai_set harvester_local_overwrite: faculty harvester_local_overwrite: site harvester_local_overwrite: department harvester_local_overwrite: pages harvester_local_overwrite: place_of_pub harvester_local_overwrite: institution harvester_local_overwrite: creators_idrefppn oai_lastmod: 2018-03-09T09:38:10Z oai_set: tse oai_set: ut1c site: ut1 citation: Ivaldi, Marc , Sokullu, Senay and Toru-Delibasi, Tuba (2015) Airport Prices in a Two-Sided Market Setting: Major US Airports. TSE Working Paper, n. 15-587, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/18369/1/wp_tse_587.pdf