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STICERD Industrial Organisation Seminars

Competitive award of scarce airport slots: an empirical analysis

Marleen Marra (Sciences Po)

Monday 20 March 2023 12:30 - 14:00

Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, in-person seminars are open to the public.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.

About this event

This paper explores the welfare impacts of introducing a market-based mechanism for the allocation of scarce airport take-off and landing slots. Instead of the usual revealed preference approach that recovers values from optimal bids, slot values are obtained as the incremental profit that an airline can generate by operating a flight in that slot. A flight-level structural model of demand and supply of airline tickets is developed that accounts for consumer departure time preferences, scheduling efficiencies, and aircraft-specific costs. Counterfactual simulations assess welfare impacts of auctioning slots on an airport-by-airport basis, as well as the role of departure hub economies of scale, budget constraints, and quantity caps.

Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, in person, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Sadia Ali:

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