Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil

American Economic Review - Tập 93 Số 4 - Trang 1194-1215 - 2003
Christopher Mayer1, Todd Sinai2
1The Wharton School, 314 Lauder-Fischer Hall, University of Pennsylvania, 256 South 37th Street, Philadelphia, PA 19104.
2The Wharton School, 308 Lauder-Fischer Hall, University of Pennsylvania, 256 South 37th Street, Philadelphia, PA 19104, and National Bureau of Economic Research.

Tóm tắt

We examine two factors that explain air traffic congestion: network benefits due to hubbing and congestion externalities. While both factors impact congestion, we find that the hubbing effect dominates empirically. Hub carriers incur most of the additional travel time from hubbing, primarily because they cluster their flights in short time spans to provide passengers as many potential connections as possible with a minimum of waiting time. Non-hub flights at the same hub airports operate with minimal additional travel time. These results suggest that an optimal congestion tax might have a relatively small impact on flight patterns at hub airports.

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Thông tin
Thông tin xuất bản

American Economic Review

Tập 93 Số 4

1194-1215

Thông tin tác giả