Abstract
This paper analyses allocation of slots in the airline industry with the tools of Transaction Cost Economics. The requirements of the transacting industries are analysed and compared to the mechanisms currently used in the United States. Objective is to understand the contracting arrangements between airline and airport industry in the United States.
This paper has been presented in a slightly modified version at the World Conference in Transportation Research in Sydney, Australia, in July 1995.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Bibliography
Anonymous (1993) Hub Hubbub. Airline Business, Sutton Surrey, August. 24–27.
Bailey, E. (1986) Economic Models and Policy Reality: Lessons from Airport Access. In Peston and Quandt (eds.), Prices, Competition and Equilibrium. Southhampton. 285–304.
Bell, M. (1991) Airport Financing. In Hardaway, R., Airport Regulation, Law and Public Policy: The Management and Growth of Infrastructure. New York. 93–106.
Blois, K.J. (1972) Vertical Quasi-Integration. Journal of Industrial Economics 20. 253–272.
Borenstein, S. (1992) The Evolution of U.S. Airline Competition. Journal of Economic Perspectives 6(2). 45–73.
Butler, R.V. and J.H. Huston (1989) How contestable are Airline Markets? Atlantic Economic Journal 17(2). 27–35.
Carlin, A. and R.E. Park (1970) Marginal Cost Pricing of Airport Runway Capacity. American Economic Review 6. 310–319.
Etschmaier, M.M. and D.F.X. Mathaisel (1984) Aircraft Scheduling: The State of the Art. Proceedings of the XXIV. Agifors Symposium, Strassbourg, France, September, 181–223.
Furubotn, E. and R. Richter (1991) New Institutional Economics: An Assessment. In Furubotn, E. and R. Richter (eds.), The New Institutional Economics. College Station, Texas A&M Press. 1–32.
Furubotn, E. and S. Pejovich (1972) Property Rights and Economic Theory: A Survey of Recent Literature. The Journal of Economic Literature 10(4). 1137–1162.
Gomez-Ibanez, J.A. and J.P. Kalt (1991) The Department of Transportation and Airport Landing Slots. In Cases in Microeconomics. Prentice Hall, New Jersey. 212–224.
Graham, A. (1992) Airports in the United States. In Doganis, R., The Airport Business. London, New York. 188–206.
Grether, D.M., R.M. Isaac and C.R. Plott (1989) The Allocation of Scarce Resources - Experimental Economics and the Problem of Allocating Airport Slots. Boulder.
Hahn, R.W. and R.G. Noll (1983) Barriers to Implementing Tradable Air Pollution Permits: Problems of Regulatory Interactions. Yale Journal of Regulation 1:43. 63–91.
Hardaway, R. (1986) The FAA Buy-Sell Slot Rule: Airline Deregulation at the Crossroads. Journal of Air Law and Commerce 52(1). 1–75.
Hong, S. and P.T. Harker (1992) Air Traffic Network Equilibrium: Toward Frequency, Price and Slot Priority Analysis. Transportation Research 26B. 307–322.
Hoover’s Handbook on American Business (1993) The Reference Press, USA.
IATA (1992) and (1994) Scheduling Procedures Guide. IATA, Geneva, 13th and 16th edition.
Janda, R. (1993) Auctioning Airport Slots: Airline Oligopoly, Hub and Spokes, and Traffic Congestion. Annals of Air and Space Law 18(1). 153–200.
Joskow, P. (1987) Contract Duration and Relationship Specific Investments: Empirical Evidence from Coal Markets. American Economic Review 17. 168–185.
Kanafani, A. and A. Ghobrial (1985) Airline Hubbing — Some Implications for Airport Economics. Transportation Research A19. 15–27.
Klein, B. and K.B. Leffler (1981) The role of market forces in assuring contractual performance. Journal of Public Economy 89. 615–641.
Langner, S. (1996) The Allocation of Slots in the Airline Industry — A Transaction Cost Economics Analysis. Baden Baden.
Le vine, M.E. (1987) Airline Competition in Deregulated Markets: Theory, Firm Strategy, and Public Policy. Yale Journal of Regulation 4. 393–494.
Levine, M. (1969) Landing Fees and the Airport Congestion Problem. Journal of Law and Economics 12. 79–109.
Masten, S., J. Meehan and E. Snyder (1991) The cost of organization. Journal of Law, Economics and Organization 7. 1–25.
Notes (1990) The Antitrust Implications of Airport Lease Restrictions. Harvard Law Review 104. 548–567.
Oum, T.H and M.W. Tretheway (1992) Airline Economics: Foundations for Strategy and Policies. Vancouver.
Saunders, L. and W.G. Shepherd (1993) Airlines: Setting Constraints on Hub Dominance. Logistics and Transportation Review 28(1). 201–220.
Starkie, D. (1992) Slot Trading at United States Airports. Putnam, Hayes and Bartlett, London.
Teodorovic, D. (1988) Airline Operations Research. New York, London.
United States Congressional Budget Office (1984) Financing U.S. Airports in the 1980s. Congress of the United States. April.
United States General Accounting Office (1990a) Airline Operating and Marketing Practices Limit Market Entry. Report to Congressional Requests Doc. No. RCED 90–147, ASI90/26113–484, August, Washington D.C..
United States General Accounting Office (1990b) Airline Scheduling. Airlines’ On-Time Performance. Report to Congressional Requesters Doc. No. RCED 90–154, June, Washington D.C..
Williams, G. (1993) The Airline Industry and the Impact of Deregulation. University Press, Cambridge, UK.
Williamson, O.E. (1989) Transaction Cost Economics. In Schmalensee, R. and R. Willig (eds.), Handbook of Industrial Organization. Amsterdam, New York. 135–182.
Williamson, O.E. (1985) The Economic Institutions of Capitalism. New York, London.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1997 Physica-Verlag Heidelberg
About this paper
Cite this paper
Langner, S.J. (1997). Slot Allocation in the United States A Transaction Cost Economics Analysis. In: Picot, A., Schlicht, E. (eds) Firms, Markets, and Contracts. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-46988-6_17
Download citation
DOI: https://doi.org/10.1007/978-3-642-46988-6_17
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-0947-3
Online ISBN: 978-3-642-46988-6
eBook Packages: Springer Book Archive