Abstract
This paper develops empirical models to test the impact of airport privatization on airline fares. We employ a difference-in-difference approach combined with an endogenous switching regression model to account for the selection of airports to be privatized. The results suggest that prices for tickets on routes with at least one privatized airport at an endpoint are about 3–3.5% higher than on routes between two publicly managed airports. By testing moderating effects, we find evidence that market dominance enforces the privatization impact on airfares. The main conclusions are consistent using various control group classifications.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
