Marginal Cost Pricing of Airport Runway Capacity.

by Alan Carlin, Rolla Edward Park

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback28 pages $20.00 $16.00 20% Web Discount

An examination of the costs of congestion delay at La Guardia Airport, New York, and possible changes in fees to reduce them. At present, each additional airliner arriving or departing between 3:00 and 4:00 p.m. imposes an average of $1,000 in delay costs on other users, and one more non-airline plane costs others more than $500. Full marginal cost pricing, imposing congestion tolls, is probably infeasible, in part because airline lessees must agree to any change to the present weight-based fees. Therefore, a proportional marginal cost pricing system is proposed that would not raise total airline costs but would tend to discourage low-value general aviation at peak hours. Administrative measures to encourage efficiency would still be needed. 28 pp. Ref.

This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.