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- W2060649962 abstract "Abstract We consider passengers with different willingness to pay that may live in a given geographical area and, thus, be entitled to a subsidy. The carrier has market power and may increase the ticket price if a subsidy for resident passengers is introduced. First, we find that if the proportion of residents is high enough, non-resident passengers may be expelled from the market. Second, we show that specific ( ad valorem ) subsidies for resident passengers are better if the proportion of passengers with high willingness to pay is low (high) enough. Finally, we apply these results to the Canary Islands case." @default.
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- W2060649962 date "2014-10-01" @default.
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- W2060649962 title "Air transport subsidies for resident passengers when carriers have market power" @default.
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