B.U. Department of Economics and Center of Economics and Econometrics Joint Seminar

 

This paper studies airport slot allocation problems. We show that the set of slots being assigned at every feasible and non-wasteful landing schedule can be divided into blocks, and each flight would only use a slot within the same block at every feasible and non-wasteful landing schedule. The set can also be split into a set of uncontested slots and a set of contested slots. An airline that uses an uncontested slot may have incentives to manipulate a schedule mechanism that “charges” a non-trivial “price” for an uncontested slot, while a competitor of such an airline may have incentives to manipulate a schedule mechanism that charges a trivial price for an uncontested slot.