Airports And The Relationship Between Aeronautical, Car Rental And Retail Services
Consider a private, congested airport that provides aeronautical services to airlines and concessions to retail service providers and car rental companies. In the model, the overall demand for retail services is independent of travel activities. In contrast, the car rental demand depends on traveling and the competition between car rental service providers inside and outside the airport area is limited. In this context, concessions are not likely to solve the conflicts between a private airport and the regulator but provide an additional rationale for regulation.