This paper models and estimates congestion prices and capacity for large hub airports. The model includes stochastic queues, time-varying traffic rates, and endogenous, intertemporal adjustment of traffic in response to queuing delay and fees. Relative costs of queuing and schedule delays are estimated using data from Minneapolis-St. Paul. Simulations calculate equilibrium traffic patterns, queuing delays, schedule delays, congestion fees, airport revenues, airport capacity, and efficiency gains. The paper also investigates whether a dominant airline internalizes delays its aircraft impose. It tests game-theoretic specifications with atomistic, Nash-dominant, Stackelberg-dominant, and collusive-airline traffic.
MLA
Joseph I. Daniel. “Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues.” Econometrica, vol. 63, .no 2, JSTOR / Econometric Society, 1995, pp. 327-370, https://www.jstor.org/stable/2951629
Chicago
Joseph I. Daniel. “Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues.” Econometrica, 63, .no 2, (JSTOR / Econometric Society: 1995), 327-370. https://www.jstor.org/stable/2951629
APA
Daniel, J. I. (1995). Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues. Econometrica, 63(2), 327-370. https://www.jstor.org/stable/2951629
The Executive Committee of the Econometric Society has approved an increase in the submission fees for papers in Econometrica. Starting January 1, 2025, the fee for new submissions to Econometrica will be US$125 for regular members and US$50 for student members.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.