Identificador persistente para citar o vincular este elemento: http://hdl.handle.net/10553/58407
Título: Air transport subsidies for resident passengers: The unexpected effects on competition
Autores/as: Socorro Quevedo, María del Pilar 
Betancor, Ofelia 
Clasificación UNESCO: 531212 Transportes y comunicaciones
Palabras clave: Subsidy
Residents
Non-residents
Ticket price
Competition, et al.
Fecha de publicación: 2019
Publicación seriada: Research in Transportation Economics 
Resumen: Subsidies for resident passengers aim to promote air connectivity in remote areas. The European Union allows these subsidies to passengers living in European outermost regions and other specific regions. This paper analyses the effects of this kind of subsidies on the ticket price and level of competition. If there is no competition in the market, the monopoly airline increases the ticket price to capture part of residents’ subsidy and, thus, non-residents will be worse off. However, when the regulator raises the amount of the subsidy, there may be an unexpected effect on competition: a potential entrant may find the entry profitable, spurring competition and air connectivity. With competition, the non-desirable effects of granting a subsidy only for residents are mitigated. However, this latter case is only possible if the proportion of resident passengers in the route is high enough.
URI: http://hdl.handle.net/10553/58407
ISSN: 0739-8859
DOI: 10.1016/j.retrec.2019.100772
Fuente: Research in Transportation Economics [ISSN 0739-8859], n. 79, 100772
Colección:Artículos
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