Abstract
We analyze the extent of market power of Amsterdam airport Schiphol in its aviation related business. First, we use information on airport charges, and a natural experiment with a passenger tax, to propose a detailed delineation of markets for the airport. Our market definition is in line with the European competition case practice, and we consider the applied methodology as also relevant for other airports. As the second step, we assess the market power of Amsterdam airport Schiphol in all the markets we have defined. We empirically analyze overlaps in the markets served by the airport and catchment areas of the airport, and demonstrate how this approach is helpful in determining the extent of the market power of an airport.
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