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Journal Article

Citation

Blondiau T, Glazer A, Proost S. Econ. Transp. 2018; 13: 48-60.

Copyright

(Copyright © 2018, Elsevier Publishing)

DOI

10.1016/j.ecotra.2017.12.002

PMID

unavailable

Abstract

This paper studies the behavior of the national air traffic control (ATC) centers in the EU as it relates to bargaining between a union and government. We analyze wage formation, the reactions of ATC's to a price-cap, the slow adoption of new technologies, the reluctance to vertically disintegrate, the slow standardization, and the failures of mergers of neighboring ATC's. The theory is illustrated by using estimated union preference parameters and bargaining power parameters for the government. We find that bargaining power and union preferences vary greatly by country.


Language: en

Keywords

Air transport control; EU air transport policy; Governmental subsidy; Political economy; Union bargaining

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