Air traffic expansion and monopoly princing

Jaskold Gabszewicz, Jean;Tarola, O
(2005) International Journal Of Transport Economics — Vol. 32, n° 2, p. 161-169 (2005)

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  • Jaskold Gabszewicz, JeanUCLouvain
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  • Tarola, O
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Abstract
In this paper we examine the pricing policy, and the ensuing optimal expansion of the aircraft fleet capacity, for a monopolistic air company. We characterise the optimal pricing and show that the resulting capacity ex-pansion is such that the length of the time interval between two successive purchases of a plane is constant through time.
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Jaskold Gabszewicz, J., & Tarola, O. (2005). Air traffic expansion and monopoly princing. International Journal Of Transport Economics, 32(2), 161-169. https://hdl.handle.net/2078.5/47199 (Original work published 2005)