Who Should Pay for Interdependent Risk? Policy Implications for Security Interdependence Among Airports

We study interdependent risks in security, and shed light on the economic and policy implications of increasing security interdependence in presence of reactive attackers. We investigate the impact of potential public policy arrangements on the security of a group of interdependent organizations, namely, airports. Focusing on security expenditures and costs to society, as assessed by a social planner, to individual airports and to attackers, we first develop a game-theoretic framework, and derive explicit Nash equilibrium and socially optimal solutions in the airports network. We then conduct numerical experiments mirroring real-world cyber scenarios, to assess how a change in interdependence impact the airports' security expenditures, the overall expected costs to society, and the fairness of security financing. Our study provides insights on the economic and policy implications for the United States, Europe, and Asia.     

基于重复博弈的京津冀机场协作机制研究

在分析京津冀机场运营环境和运营现状以及机场运营特征的基础之上,设计了机场收益函数和博弈的策略组合,建立了完全信息静态博弈结构及其重复博弈模型,求解了重复博弈纳什均衡及其均衡条件,提出了实现机场协作的变量取值范围,并设计相应的政策机制。研究发现,京津冀机场业务分布不均,航线重叠率较高,而且业务饱和度较高的首都机场经营业绩不佳,实现京津冀机场的业务整合尤为必要。然而,当前机场所在当地政府出台了许多机场扩建规划,依据完全信息静态博弈模型分析可知,这会将机场发展推向"囚徒困境"。从本质上分析,三地机场竞争服从无限次重复博弈模型,在此条件下,三方合作成为子博弈精炼均衡,长期协作成为可能。通过合作条件分析发现:三方合作后的规模效应越大,合作越易成功;北京机场的非航空业务收入占总收入的比例越大,合作越易成功;即使津冀机场的规模效应大于首都机场的规模效应,津冀机场依然不倾向于合作,由此可见,津冀机场是合作的主要障碍。     

When runways move but people don’t: The O’Hare Modernization Program and the relative immobilities of air travel

Abstract

This paper draws on Urry’s four interconnected senses of mobility to argue that the O’Hare Modernization Project, carefully framed as moving runways rather than expanding O’Hare International Airport, has differentially affected the mobilities of people and land uses in addition to airport boundaries and noise, and that work on aeromobilities has not sufficiently considered spaces on the ground beyond airport borders. The relative immobility of the built environment around a major piece of infrastructure such as O’Hare has significant material consequences when the airport itself becomes mobile, reminding us of the politics inherent to the production of mobility systems and cities.     

The economic importance of air travel in high-amenity rural areas

The western United States offers a case study on the importance of access to large population centers and their markets, via road and air travel, for economic development. The vast distances between towns and cities in the American West can be a detriment to business, yet they also serve to attract technology and knowledge-based workers seeking to live in a picturesque setting. In spite of the increasing importance of amenities to migration and business location, also needed is access to markets, particularly via commercial air service. We test a new county classification system for the western United States to reflect differing degrees of access to population centers and account for the increasing importance of airports. Past classifications are based on population size and cross-county commuting. We examine the validity of this new classification and test for differences in economic performance among the three county types. Our findings show that there are three distinct Wests that can be classified using economic performance measures and socioeconomic characteristics. The results show that “metro” and “isolated” counties are clearly distinct, but “connected” counties, those that are rural in nature but have ready access to metropolitan areas via air travel, can be difficult to distinguish from “metro” and “isolated” counties. Much of the variation is explained by travel distance to airports. The findings illustrate the importance of airports in rural development, and the limitations facing those communities that are isolated from markets and population centers. The results apply to other parts of the world with similar characteristics that include large expanses of open space, natural amenities that attract migrants and stimulate new business, and different degrees of access to large population centers via road or air travel, and therefore different rates of economic growth.     

Strategic reactions to the abolition of duty free:: Examples from the European airport sector

The abolition of duty free and tax free sales to intra-EU passengers on June 30 1999 curtailed the opportunity for airport authorities to generate retail related income. Prior to abolition, approximately 40 per cent of all duty free sales were between European Union countries. Since the abolition, airport authorities have had to identify alternative ways in which revenue could be generated.The paper is based upon interviews conducted with key decision-makers in the European airport industry. It details the strategies pursued by the industry prior to abolition and highlights the range of initiatives undertaken by the industry since July 1999. Finally a series of conclusions are drawn as to the future of the duty free industry within Europe.     

When People Stay and Things Make Their Way: Airports,Mobilities and Materialities of a Transnational Landscape

Abstract

This article explores different meanings of mobility and place by examining the interweaving of people, things and airports in Guinea-Bissau and Portugal. Based on ethnographic fieldwork conducted in two airports – of departure and arrival of this migratory route – I look at the practices of sending and receiving objects by migrants in Lisbon and their kin in Bissau. The transnational yet grounded setting helps to provide a better understanding of the complexity associated with different forms of mobility – including corporeal, imagined and desired – and their key role in socially and relationally constructing a lived airport space, as well as wider social landscapes. Bringing in evidence from a less-explored setting – a small airport in a West African country – will particularly challenge some of the assumptions that tend to associate mobility with ‘modernity’ and fixity with ‘tradition’. It will show how people in Guinea-Bissau are, as much as migrants abroad, dynamically involved in global practices of movement – materialised in trading and reciprocating objects between two continents – through local performances of mobility that do not necessarily involve corporeal travel across borders.